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1BPT Hansa Lux SICAV-SIF Annual Report 2015
BPT HANSA LUX SICAV-SIFSociété d’Investissement à Capital Variable
CONSOLIDATED FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITOR’S REPORT
AS AT 31.12.2015
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2 BPT Hansa Lux SICAV-SIF Annual Report 2015
General information
Business name BPT Hansa Lux SICAV-SIF (the “Fund”) Registeredalternativeinvestmentfundmanager(“AIFM”)
Beginningoffinancialyear 1January2015 Endoffinancialyear 31December2015
InvestmentManager NorthernHorizonCapitalA/S ChristianIX’sGade2,2ndfloor, DK-1111CopenhagenK,Denmark CustodianandPayingAgent BanquedeLuxembourgS.A.(the“BdL”) 14,BoulevardRoyal L-2449Luxembourg
FundAdministrator,Domiciliary, EuropeanFundAdministrationS.A.(the“EFA”)RegistrarandTransferagent 2,rued’Alsace,P.O.Box1725,L-1017Luxembourg TypeofFund Non-publicclosed-endedrealestatefund
StyleofFund Coreplus/Valueadded
StatusofFund Closedfornewsubscriptions
Marketsegment Retail/Offices/Hotel/Industrial
Lifetime Finite(3May2023)
AddressoftheFund 2,Rued’Alsace,L-1122Luxembourg, GrandDuchyofLuxembourg Fundmanager GeorgHaider
BoardofDirectors AlainHeinz,Chairman(Luxembourg) Dr.LarsChristianOhnemus(Denmark) RüdigerKimpel(Luxembourg)
Phone +35248488080Fax +3524865618690
Independent auditor Ernst & Young S.A. 7,RueGabrielLippman,Parcd’Activite’Syrdall2, L-5365Munsbach,Luxembourg
Propertyvaluators bulwiengesaappraisalGmbH Wallstraße61,10179Berlin,Germany and Dr.-Ing.EgbertKrellmann(publiclyappointedandswornexpert) Küsselstraße13A,14473Potsdam,Germany
3BPT Hansa Lux SICAV-SIF Annual Report 2015
DEFINITIONS OF kEy TERMS AND ABBREVIATIONS 4
MANAGEMENT STATEMENT 5
MANAGEMENT REVIEw 6
INDEPENDENT AUDITOR’S REPORT 15
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 16
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 17
CONSOLIDATED STATEMENT OF CHANGES IN EqUITy 18
CONSOLIDATED STATEMENT OF CASH FLOwS 19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 20
Contents
4 BPT Hansa Lux SICAV-SIF Annual Report 2015
CSSF Luxembourgfinancialsupervisoryauthority(“CommissiondeSurveillanceduSecteurFinancier”)
Fund BPT Hansa Lux SICAV-SIF
IFRS InternationalFinancialReportingStandards
IFRS NAV NAVdeterminedincompliancewithIFRS
INREV EuropeanAssociationforInvestorsinNon-listedRealEstateVehicles
INREV NAV IFRSNAV,adjustedtocomplywithINREVguidelines
Investor(s) Well-informedinvestorsdefinedinArticle2(1)oftheSIFLawshallbeanyinstitutionalinvestor,apro-fessionalinvestororanyotherinvestorwhoa)hasconfirmedinwritingthatheadherestothestatusofwell-informedInvestor,andb)(ii)investsaminimumofEUR125,000intheFund,or(ii)hasobtainedanassessmentmadebyacreditinstitutionwithinthemeaningofDirective2006/48/EC,byaninvestmentfirmwithinthemeaningofDirective2004/39/ECorbyamanagementcompanywithinthemeaningofDirective2001/107/ECcertifyinghisexpertise,hisexperienceandhisknowledgeinadequatelyapprai-singaninvestmentinthespecialisedinvestmentfund
GAV Thegrossassetvaluemeaningtheaggregateofthemarketvalueofinvestments
INREV GAV IFRSGAV,adjustedtocomplywithINREVguidelines
Investment Manager NorthernHorizonCapitalA/S,registeredaddressatChristianIX’sGade2,2ndfloor,DK-1111Copenha-genK,DenmarkactingthroughitswhollyownedsubsidiaryNorthernHorizonCapitalGmbH,registeredaddressatWeinmeisterstrasse12-14,D-10178Berlin,Germany
Leverage DebtfinancingoftheFund,correspondingtomaximum70%ofGAV
NAV NetassetvaluefortheFund
NAV per share NAVdividedbytheamountofsharesintheFundatthemomentofdetermination
NOI Netoperatingincome
Direct Property Yield NOIdividedbythetotalacquisitionpriceincludingacquisitionfeesandincurredcapitalexpenditures
Return on Equity RatiobetweenReturnandAverageTotalEquityfortherelevantperiodexpressedasapercentage
Valuation Day 31Decembereachyear
Definitions of key terms and abbreviations
5BPT Hansa Lux SICAV-SIF Annual Report 2015
TodaytheBoardofDirectorshavereviewedandapprovedthe2015 consolidated financial statements of BPT Hansa Lux SI-CAV-SIFanditssubsidiaries.
Theconsolidatedfinancialstatementsarepreparedinaccordan-cewithInternationalFinancialReportingStandardsasadoptedbytheEuropeanUnion.Weconsidertheappliedpoliciestobeappropriateandthattheconsolidatedfinancialstatementspro-videatrueandfairviewoftheconsolidatedfinancialpositionofBPTHansaLuxSICAV-SIFanditssubsidiariesasof31December2015andoftheirconsolidatedfinancialperformanceandcon-solidatedcashflowsfortheyearthenendedinaccordancewithInternationalFinancialReportingStandardsasadoptedby theEuropeanUnion.
Werecommendthattheconsolidatedfinancialstatementsandtheannualreportareapprovedattheannualgeneralmeetingofshareholders.
15April2016
Board of Directors
Alain Heinz
Chairman
Dr. Lars Ohnemus
Rüdiger Kimpel
Management statement
6 BPT Hansa Lux SICAV-SIF Annual Report 2015
BPT Hansa Lux SICAV-SIF (“the Fund” or “BPT Hansa”) is a direct realestatefundinvestingincommercialpropertiesinNorthernGermany,mainlyBerlin. The fund isdesigned for institutionalinvestors,Germanand international, and shouldbe seenasalong-term investment product. The financial objective of theFund,whenfullyinvested,istoprovideitsInvestorswithcon-sistentandaboveaveragerisk-adjustedreturnbyacquiringhighqualitycashflowgeneratingcommercialpropertieswithpoten-tialforaddingvaluethroughactivemanagement,therebycrea-tingastableincomestreamofhighyieldingincomecombinedwithcapitalgainsatexit.ThestrategyoftheFunddidnotchan-gesincetheyear-end2013.However,ithastobenotedthatthefundsizeofEUR300millionhasnotbeenreachedsofar.
NorthernHorizonCapitalA/ShasbeenappointedbytheBoardandtheshareholdersasinvestmentadviserandmanageroftheinvestmentsof theFund (the „InvestmentManager“). The In-vestmentManageractsasadviserfortheFundandmanagestheinvestmentsoftheFundinrelationtoitsinvestmentpractices.TheInvestmentManagerhasnotbeengrantedanydiscretion-aryinvestmentpowersovertheassetsoftheFund.Theadvicerelates to theplacementof fundsandrespects theoverall in-vestmentpolicies,riskprofile,purposeandinvestment-relatedrestrictionsdeterminedbythePPM.
TheInvestmentManagerhasaclearfocusoncorporategover-nanceandhighethicalstandardsandaswellaninternalcomp-liancemanagementtoensurethatallInvestorsaretreatedfairlyandequally.TheInvestmentManagerfollowstheINREVguide-linesforcorporategovernanceanditisalongstandingprincipleoftheInvestmentManagerthatallitsfundsaretransparentandthatcommunicationtoInvestorsisaccurate,directandtimely.Therequirementsforgoodcorporategovernanceinrelationtothecompositionoftheboardofdirectorsforeachfundarealsoadheredto,ensuringanindependentandcompetentBoardofDirectors.
Investorsparticipate inmanagementof theFundthroughGe-neralMeetings.AnyregularlyconstitutedmeetingoftheSha-reholdersoftheFundshallrepresenttheentirebodyofitsSha-reholders.Itshallhavethebroadestpowertoorder,carryoutorratifyactsrelatingtotheoperationsoftheFund.Thegeneralmeetingof shareholdersshallmeetuponcallby theBoard. Itmayalsobecalledupontherequestofshareholdersrepresen-tingatleast5%ofthesharecapital.NoticeoftheGeneralMee-tingisgivenatleast8daysinpriortothemeetingtotheiradd-ressesasrecordedintheregisterofShareholders.EverySharecarriesone(1)voteatgeneralmeetingsofShareholders.
TheBoardofDirectorsconsistsofaminimumofthreeandama-ximumoffivemembers.Currently,theBoardofDirectorscon-sistsofthreememberswithbroadinternationalexperience(pro-
filesandCV’softheDirectorsareavailableuponrequest).Anydirectormayberemovedwithorwithoutcauseorbereplacedatanytimebyresolutionadoptedbythegeneralmeeting
The Fund has appointed European FundAdministration as itsadministrator (the “Administrator“). In this capacity, the Ad-ministrator is responsible for the computation of the NAV oftheShares,themaintenanceofrecordsandothergeneralad-ministrativefunctionsassetforthunderLuxembourglaw.Fur-thermore, theadministrator shallalsoverify thatall InvestorscomplyatalltimeswiththestatusofWell-InformedInvestorspursuanttoarticle2oftheSIFLaw.EuropeanFundAdministra-tionalsoactsasdomiciliary,registrarandtransferagent.
TherealestatepropertyvaluationpoliciesoftheFundarede-terminedby theBoardbasedonmarketpractice.Real estatepropertiesareassessedat leastannuallyby two independentreal estateappraisers (the ”Appraisers“) appointed fromtimetotimebytheBoard.TheAppraisersareselectedfromprofes-sionalsorcompanieswhoarelicensedandwhooperateinthegeographicalareawhereanyrelevantrealestatepropertiesarelocated.Thepropertyvaluationisbasedonfairmarketvalueasof31Decembereachyearandinprincipleisasinglevaluationsignedbybothindependentappraisers.IftheAppraisersdonotreachanagreementandbothopinionsarecredible,theBoardwillrelyonthevaluethattheFundismostlikelytorealisefromthepropertyinanormalsale.Attheendof2015,Fundproper-tieswerevaluedexternallybyindependentvaluatorsbulwien-gesa appraisal GmbH and Dr.-Ing. Egbert Krellmann (publiclyappointedandswornexpert).
Each potential acquisition opportunity is subject to extensivecommercial, legal, technical and financial/tax due-diligenceperformedbytheInvestmentManagerincooperationwithre-putablelocalandinternationaladvisers.TheauditoroftheFundisErnst&YoungS.A.Luxembourg. Sinceinceptionin2008,theFundactivitiesaremonitoredonaregularbasisby theCSSF, theFundadministrativeagent (alsodomiciliary, registrar and transfer agent) European Fund Ad-ministration (the “EFA”, registered address at 2 Rue d’Alsace,L-1122Luxembourg)andFundcustodianandpayingagentBan-quedeLuxembourg(the“BdL”,registeredaddressat14boule-vardRoyal, L-2449 Luxembourg).As from16August2013 theCSSFhasregisteredBPTHansaasalternative investmentfundmanager (“AIFM”) in Luxembourgunder the Luxembourg Lawof12 July2013onalternative investment fundmanagersandtheEuropeanUnionDirectiveonAlternative InvestmentFundManagers(“AIFMD”). Inaddition, InvestmentManagerhasas-sessedthelevelofcompliancewithINREV’sreporting,NAVandfeeandexpensemetricsmodules.Theresultsofsuchself-asses-smentaresummarisedbelow:
Management Review
7BPT Hansa Lux SICAV-SIF Annual Report 2015
Table 1: Statement of level of adoption of INREV Guidelines
INREV module Guidelines Level of adoption or compliance
1 CorporateGovernance ThecompliancewiththeINREVcorporategovernancemodulehasbeenconside-redbythemanager.TheintendedframeworkpartiallycomplieswiththeINREVcorporatebestpractices.Thevehicleassessedattheendofthefinancialyearthatitiscurrentlyfollowingitsintendedcorporategovernanceframework.
2 Reporting Althoughnotdetailedinthefunddocumentation,theINREVreportingmodulehasbeenconsidered.TheINREVrequirementsarecompliedexceptthatnose-mi-annualreportingisprovidedforinvestors.
3 Propertyvaluation TheFund’spropertyvaluationsarecarriedoutinlinewithINREVbestpractices.Thoughnotseparatelydocumented,thevaluationperformedbytheexternalvaluatorissubjecttothemanager’sinternalreview.
4 Performancemeasurement TheFundcalculatesperformancemeasurementasperguidelinessetbyINREV.
5 INREVNAV TheFundcalculatesINREVNAVasperguidelinessetbyINREV.
6 Fee and expense metrics TheFundcalculatesINREVfeeandexpensemetricsasperguidelinessetbyIN-REV.However,theforwardlookingratioshavenotbeencomputedanddisclosedatvehiclelaunch.
7 Liquidity ThemanagerhasassessedthatitiscurrentlyfollowstheliquidityframeworkdefinedbyINREVexceptthattheFundasaclosed-endfunddoesnotmaintainaliquidityprotocoldocumentandthesecondarytradingpolicyhasnotbeendescri-bedintheFunddocumentationasitisnotpracticedbytheFund.
8 INREVdatadelivery TheFundisincompliancewiththeINREVdatadeliverymodule.
The Fund currently is not engaged in property developmentactivities, joint ventures, associate investments or othernon-propertyrelatedinvestments.
All thefinancial informationdisclosed in this reviewcoincideswiththefinancialstatementsforthefinancialyearended31De-cember2015.
MANAGER’S REPORT
Asoftheendof2015BPTHansaLuxSICAV-SIF(hereinafter“theFund”or“BPTHansa”)hascompleteditseighthfullyearofope-rations.ThenetpropertyoperatingincomeoftheFundin2015amountedEUR3.2million(EUR3.2millionin2014).Theaveragedirectpropertyyieldfortheyearwasslightlyhigherthanbud-getedinallproperties,Hamburg-Wärtsilä(7.3%),Berlin-Dahlem(4.2%), Walsroder Strasse (6.5%) and Bessemerstraße, Berlin(6.7%).The IFRSNAVper share increased fromEUR102.13atyear-end2014toEUR104.07attheyear-end2015.
TheFund’s total gross asset value (GAV) increased in2015 toEUR61.2millioncomparedtoEUR60.5millionatyearend2014andthedirectpropertyyieldshowsanaverageof5.4%fortheentire portfolio which is slightly above budget. In 2015, theFund has successfully maintained performance improvementoftheofficetowerinBessemerstraße,refinancedtheHannover
propertywithattractiveconditions,distributed3%tothesha-reholdersandtheFund’sgrosspropertyvalueincreasedbyEUR0.9millioncapitalgainstoEUR58.5millioncomparedtoatYE2014EUR57.6million.
The remaining weighted non-breakable lease term for thepropertiesintheportfoliowasapproximately10.3yearsattheendof2015.Theeconomicgrowthhadafavourableimpactonoccupancy levels of all assets except the hotel property, andpro-active asset management of the fund manager resultedinan increaseoftheaverage leaseofEUR0.60/sqminBesse-merstraßeanda lengtheningoftheweightedaverageunexpi-redleaseterm(“WALT”)of455%withinonly2years.Attheendof2015,theportfoliooftheFundshowsanoccupancyrateof94.3%.
Having closed the investment period for new subscriptions,BPTHansahasnotbeenfacedwithany legacy issues;thebu-siness concept is clear and the operating results satisfactory.Inthisrespect,themanagementisproceedingtolookatdiffe-rent investmentopportunities. Buildingswithno future valueenhancementpotentialshallbedisposedandthefundswillbere-investedinpropertieshavingsuchpotentialaccordingtotheFund’sstrategy.Withthisstrategy,theFundexpectstobeabletodistributecomparabledividendstotheshareholders.
8 BPT Hansa Lux SICAV-SIF Annual Report 2015
Additionally,theFundisstilllookingforopportunitiestosetupadditionalcompartmentsandtoamendthecurrentstructuretoanumbrellafundwithaclearmainfocusonBerlin.Theambitionistocreateamulti-compartment-vehicle,whichprimarilyleadstoasubstantialdecreaseofoverheadsfortheexistinginvestorsand provides existing and new investors with a focussed in-vestmentconceptbetweendifferentassetclassesinGermany’sexhaustingcapital.
MACROECONOMIC FACTORS
Followinganacceptableyearofgrowthof1.6%in2014,2015wasagainaffectedbyunsteadytrendsinworldandespeciallytheEuropeantradeandlowinterestrates.DespitetheongoingweakEUROcurrencyandEuropeaneconomicclimate,theGer-mangrowthkeptexpandingby1.7%in2015driven largelybythedomesticeconomyandincreasingexporttradesupportedbylowinterestratesandthepositivedevelopmentofthelabourmarket.
ThegovernmentisprojectinganongoingstableGDPgrowthof1.7%in2016andof1.5%in2017.Thecontinuousimprovementofthelabourmarketisprovidingasignificantsupportforpriva-teincomeandanincreaseinprivateconsumption.Germanyhasagainexperiencedastrongriseinemploymentduring2014and2015. The 43.18million people employed is the highest levelnotedever.Thetotalunemployment level issteadily low,andshowedinDecember2015alevelofonly6.1%.
After amoderate increase in consumerprices in 2014 (0.2%),2015showedaslightlyhigheraveragerateof0.3%.Theannualinflationfor2016isexpectedatmoreorlessthesamelevel.
CAPITAL STRUCTURE AND VEHICLE LEVEL RETURNS
Asat31December2015,theFund’spaidincapitalfromInves-torsamountstoEUR24.3million.Themaximumamountofsha-recapitalallowedinthePPMisEUR100million.However,theFund’s active equity raising periodhas endedbeginning 2012andsincethentheFundisclosedfornewinvestors.Alltheca-pitalcontributedintoFund’saccounthasbeenfullyinvested.
TheFundmadeadividenddistributionin2015ofEUR3.00perunit.TheNAVandINREVNAVarefurtherdetailedintheMana-ger’sreportsection.
TherehavebeennochangesintheFund’sfeestructureanditsimpactontheFund’scapitalstructureorvehiclelevelreturns.
FINANCIAL REPORT
Financial position of the FundAsat31December2015theGAVoftheFundincreasedtoEUR61.2millioncomparedto60.5millionasat31December2014.
Asof31December2015, theFundNAVwasEUR25.3million(EUR 104.07 per share), compared to EUR 24.9 million (EUR102.13 per share) as at 31 December 2014. The increase inNAVismainlyrelatedtothevaluationadjustmentoftheDah-lemproperty(anincreaseofEUR0.7millioninpropertyvaluerecordedandavaluationgainsofWärtsilä-Hamburg (EUR0.2million).
WiththeintentiontofullycomplywiththerequirementssetinINREV guidelines, the Fund also calculated INREVNAV,whichwasEUR22.4million(EUR91.87pershare)asat31December2015(EUR86.75pershareasat31December2014).
Though not discussed in the Fund documentation, the INREVNAVwascalculatedaccordingtotheprinciplesandguidelinesprovidedintheINREVGuidelinesthatwereamendedon1April2014.ThefrequencyofNAVcalculationthatissetinthePPMis
Table 2: Main macro-economic indicators for Germany
Indicator 2009 2010 2011 2012 2013 2014 2015GDPatMarketPrices(EURbn) 2,407 2,498 2,570 2,645 2,735 2,820 3,025
RealGDPGrowth(%,YOY) -4.7 3.6 3.0 0.9 0.4 1.4 1.7
GovernmentBalance(%ofGDP) -3.0 -3.3 -1.0 0.1 0.0 0.1 0.2
ConsumerPriceInflation(%) 0.4 1.1 2.3 2.0 1.5 0.9 0.3
Unemployedrate(%) 7.9 7.4 7.1 6.8 6.8 6.7 6.1
Population(million) 81.9 81.8 80.3 80.5 80.8 81.1 81.9
Sources:StatistischesBundesamt,DeutscheBundesbank,BundesagenturfürArbeit,HWWI.
9BPT Hansa Lux SICAV-SIF Annual Report 2015
asofeachValuationdate,andthesametermsareappliedforINREVNAVcalculation.The INREVNAV iscalculatedadjustingNAVfortheitemssummarisedinthetablebelow:
TheINREVGuidelinesrequirethattheset-upcostsoftheFundwouldbecapitalizedandamortizedoverthefirstfiveyearsaftertheinception.TheFundset-upcosts incurredattheinceptionof theFund in2008havenotbeencapitalizedandamortiseddue to the 5-year amortizationperiod set by INREVended in2013.Therefore,itisassumedthattheresidualcapitalizedset-upcostsasat31December2015wouldequaltoEUR0.
UndertheINREVGuidelines,theacquisitionexpensesofanin-vestment property should be capitalized and amortised overthefirstfiveyearsafteracquisitionoftheproperty.Theacqui-sitionexpensesofWalsroderStrasseandDahlempropertiesin2007andWärtsiläproperty in2008havebeencapitalizedac-cording to IFRS.However, thesewerenotamortized in INREVNAVcalculationasthe5-yearsamortizationperiodsetbyINREVNAVhasalreadyended.
Notes to INREV NAV1. In2013acquisitionexpensesamountingtoEUR808thousand
were incurred in relationtoacquisitionofBessemerstraßeproperty. In accordance with INREV guidelines, theseacquisition expenses are capitalized and amortised overthefiveyearsafter theacquisition.During2015, theFundamortized EUR 161 thousand, resulting in a cumulativeamortizationofEUR337thousand.Theresidualcapitalizedacquisitionexpensesasat31December2015amounttoEUR471thousand.
2. Under INREV Guidelines, the financial liabilities, includingdebt obligations, should be at fair value for INREV NAVcalculation purposes. As at 31 December 2015, the bankloansinamountofEUR34.2millionarecarriedatfixedrateinterestandmeasuredatamortisedcostusingtheeffectiveinterestmethodinthefinancialstatementsoftheFund.Thefairvalueofthesebankloansasdeterminedinaccordance
with IFRS amounts to EUR 38.2 million. The negativeadjustment of EUR 4.0 million represents the impact onINREVNAVofthemeasurementofthisdebttoitsfairvalue.
3. The tax effect in relation to measurement the fixed ratedebt to its fair value creates a positive effect of EUR 633thousandasat31December2015.Thetaxeffectinrelationto capitalization and amortization of property acquisitioncostsresultstoanegativeeffectofEUR75thousand.Thetaxeffectwascalculatedatthe15.825%taxrateapplicable inGermanyonthefinancialdebtfairvalueadjustmentandtheunamortized acquisition costs relating to BessemerstraßepropertyinGermany.
4. Theimpactofrevaluationoffairvalueofdeferredtaxeshasnot been reflected in the INREV NAV adjustments as themanagement aims to dispose the investment propertiesthroughthewayofanassetdeal.
Financial results of the FundIn2015,theFundrecordednetconsolidatedprofitofEUR1,202thousand(EUR1,165thousandlosswasrecordedin2014)whichhadapositiveeffectontheFund’sNAV.Moredetailsareprovi-dedinthestatementofcomprehensiveincome.
During2015thegrossrentalincomeearnedbytheFundsubsi-diariesamountedtoEUR4,112thousand(EUR4,110thousandduring2014).During2015thepropertyrelatedexpensesintheFund subsidiaries amounted to EUR 875 thousand (EUR 906thousand during 2014).
Fees and expenses TheFundfeestructureisdeterminedinthePPMthatwasap-provedby theCSSF.TheFundcalculates the feeandexpensemetrics based on INREV guidelines as a percentage of INREVGAVandINREVNAV.Thedetailcalculationsareprovidedintab-le 4.
Table 3: Adjustments for recalculating NAV to INREV NAV
No. Item Amounts in euros Notes 1 NAV as of 31 December 2015 25,339,922
2 Capitalizationandamortizationofpropertyacquisitioncosts* 471,402 1
3 Revaluationtofairvalueoffinancialassetsandfinancialliabilities (4,001,671) 2
4 Estimationoftaxeffectof(2.)and(3.)above 558,665 3
5 INREV NAV 22,368,318
6 Amountofunits 243,484
7 INREV NAV per unit 91.87
*Thecostsareamortizedduring5years
10 BPT Hansa Lux SICAV-SIF Annual Report 2015
Thestructureoffeearrangementswithmanagersandaffiliatesaredescribedbelow:
Fund Management FeeThe InvestmentManager provides all economic and financialinformationwhich isnecessaryfortheoperationsoftheFund
aswell as investmentmanagementof theFund‘sportfolioona day to day basis. Therefore, the InvestmentManager is en-titledtoreceiveamanagementfeecalculatedat0.75%oftheGAVperannumoftherealestateportfolio.TheGAVoftherealestate portfolio is determined on each Valuation Day on thebasisof the investmentvalue, inaccordancewith IAS40.The
Table 4: Expense ratios of the Fund and Fund’s subsidiaries based on INREV fee metrics guidelines
Classification Fee/Expense Item AmountManagement fees Managementfees 433,688
Vehicle costs Custodianfees 50,953
Valuationfees 21,500
Auditfees 63,050
Legalfees 22,263
Otherconsultancyservices 183,512
Bankcharges 1,933
Administrationandsecretarialfees 92,473
Total vehicle costs before performance fees A 869,372
Performance fees B -
Total vehicle costs after performance fees C=A+B 869,372
Property expenses Propertymanagementfees 157,460
Propertyinsurance 83,441
Salesandmarketingexpenses 15,105
Servicechargeshortfall 92,480
Amortisationofpropertyacquisitioncosts 161,624
Total property expenses D 510,110
Total expenses before financing costs and taxes E=C+D 1,379,482
Weighted average INREV NAV (WA INREV NAV)
WeightedaverageINREVNAV F 21,440,289
Weighted average INREV GAV (WA INREV GAV)
WeightedaverageINREVGAV G 56,698,282
TER before performance fees
Fundexpensesbeforeperformance/WAINREVNAV =A/F 4.05%
Fundexpensesbeforeperformance/WAINREVGAV =A/G 1.53%
TER after performance fees
Fundexpensesafterperformance/WAINREVNAV =C/F 4.05%
Fundexpensesafterperformance/WAINREVGAV =C/G 1.53%
REER
Propertyexpenses/WAINREVNAV = D/F 2.32%
Propertyexpenses/WAINREVGAV = D/G 0.90%
11BPT Hansa Lux SICAV-SIF Annual Report 2015
investmentvalueisthegrossvalueoftherealestatepropertiesexclusiveofall liabilitiesandnotcountingnon-investmentas-setssuchascars,furniture,stationaryetc.
Performance Bonus FeeThemethodusedtocomputetheaccruedmonthlyPerformanceBonusFeeincludesaclawbackwheretheaccruedPerformanceBonusFeecanbereducedincasetheannualizedperformanceof theFund is less than the7%hurdle rate.ThePerformanceBonusFeeiscalculatedannuallyonthebasisofthe3-yearrol-lingaverageandispaidout8daysfollowingtheannualgeneralmeetingofShareholders.IftheannualReturnonEquity(ROE)(calculatedforperformancepurpose)of theFundexceeds7%p.a., calculated as CompoundedAnnualGrowthRates (CAGR)ofthebasisonthemonthlyweightedequityforthelastthreeyears, thePerformanceBonus Feewill amount to20%of thereturnachievedabovethistarget.
TheROEisanamount,expressedasapercentage,earnedonafundscommonstockforagivenperiod.Itiscalculatedbydivi-dingcommonstockequity(networth)atthebeginningoftheaccountingperiod intonet income for thepoint intimeafterpreferredstockdividendsbutbeforecommonstockdividends.Neitherin2014norin2015hastheInvestmentManagerbeenentitledtoreceiveaperformancefee.
Property Management Fee TheInvestmentManagerisentitledtoapropertymanagementfee calculated as 0.5% and 1% of themonthly rental incomeof the real estatesmanagedby the InvestmentManager. TheInvestmentManagerhassignedpropertymanagementagree-ments regarding the management of Dahlem and Wärtsiläproperties. The property management fee is accrued by theFundsubsidiariesholdingtherealestatesonamonthlybasis.
Acquisition feeThe InvestmentManager is entitled to aone-timeacquisitionfeeof0.3%ofthetotalacquisitionsum(directacquisitionpriceplustransactioncosts)ofeachrealestateinvestmentacquireddirectlyorindirectlybytheFund.ThereisnofeepayabletotheInvestmentManagerifanypropertiesaredivested.
PROPERTy REPORT
During2015theFundhadnonewacquisitionsordisposals.Theportfolioconsistsof4assetsandhasatotalrentableareaof33036sq.m.Thegrossvalueof the total investmentpropertiesincreasedtoEUR58.5million(2014:57.6million).TheincreasewasmateriallyaffectedbyavaluationcapitalgainoftheDahlemhotel.
In 2015 the average direct property yield increased to 5.4%(2014:5.3%).ThisismainlydrivenbyNOIimprovementinDah-lem and Bessemerstraße. The profit from property operatingincomefortheyearremainedstableatEUR3.2million,whichisslightlybelowthebudget.Theaverageoccupancyremainsathighlevelof94.3%withincreasingtrendfor2016(2014:96.9%)
The summary of the portfolio allocation by sector and geo-graphyisdetailedinthepicturebelow.
Property valuations Thebreakdownofeachpropertymarketvalueisshowninthetablebelow.
As of 31 December 2015, 100% of Fund properties were va-
luedexternallybyindependentvaluatorbulwiengesaappraisalGmbH and Dr.-Ing. Egbert Krellmann (publicly appointed andswornexpert).Theappraisersderivethefairvalueinaccordan-cewiththePracticeStatementsandRelevantGuidanceNotesoftheRICSAppraisalandValuationandapprovedbyboththe
Picture 1: Fund segment and region distribution*
RetailOfficeHotelIndustrial
*based on fair value of investment properties
BerlinHanoverHamburg
43 6 15 69 16 11 40
Table 5: Property portfolio, in million euros
Property Market value 31 December 2015
Market value 31 December 2014
Dahlem,Berlin 29.7 29.0
Wärtsilä,Hamburg 9.4 9.2
WalsroderStrasse,Hanover 8.6 8.6
Bessemerstraße,Berlin 10.8 10.8
12 BPT Hansa Lux SICAV-SIF Annual Report 2015
InternationalValuationStandardsCommittee(IVSC)andbytheEuropeanGroupofValuers’Association(TEGoVA).Inaccordan-ce with that basis, themarket value is an estimated amountforwhichapropertyshouldexchangeonthedateofvaluationbetweenawillingbuyerandawillingseller inanarm’slengthtransaction after proper marketing wherein the parties hadeachactedknowledgeably,prudentlyandwithoutcompulsion.PrioryearvaluationswereperformedbyDipl.-Ing.GallinaGün-ter(CISHypCert)andDr.-Ing.EgbertKrellmann.
Theappraisersderivethefairvaluebyapplyingthemethodo-logyandvaluationguidelinesassetoutbytheRoyalInstitutionofCharteredSurveyorsintheUnitedKingdomandinaccordan-cewithIAS40.
Thefairvalueofinvestmentpropertyinthesubsidiariesisde-terminedusingrecognizedvaluationtechniques.Therangesofdiscountratesusedbytheappraiserstovaluethe investmentpropertiesasof31December2015wereinrangebetween5.5%and5.8%(DiscountedCashFlowmethod).Thevaluationpresu-mesthatthepropertiescouldberealisedintheordinarycourseofbusiness.
Property performanceTheoperatingresultsoftheFund’spropertieswerestableandin linewith thebudgetedfigures. Thedetail performance foreachpropertyisdescribedundereachpropertysectionbelow.
Dahlem, BerlinAfteritslaunchphasein2009,thehoteloperationsoftheBer-lin-Dahlem property have been developing only at a middlepaceandarestillbelowmanagementandhoteloperatorexpec-tations.Seminarishasreceivedonlymoderateturnoverresults,however,in2014forthefirsttimesincetake-overwithaninc-reasingtrend.Thesameappliesfor2015.
Duetothetrendof increasingnewhotelprojectsin2013and2014,thecompetitioninBerlindramaticallyhasbeendramati-callyreinforced.Asaconsequence,thepropertyvalueofDah-lemdecreasedfromEUR33milliontoEUR29millionin2014.
During2015theFundManagementmaintainedwithstrategiestoimprovetheturnoverandperformanceofthehoteloperatorandtoclosetheremainingvacantspace.Unfortunately,thecre-ditworthinessof thepost shopoperatordecreasedagainandtoavoidaninsolvencythefundenteredintoacourtsettlementandclosedthecurrentleaseagreementasof31December2015inreturntoapaymentofEUR100,000tobepaidbyinstalmentsoverthenextyears.
OnapositivenotetheBerlinhotelmarkethasimprovedandisboomingatthemoment.Inreflectionofthisfacttheproperty
valueofDahlemproperty increased fromEUR29.0million toEUR29.7million.
Wärtsilä, HamburgInthesixthfullyearaftercompletionoftheHamburgproperty,theperformanceofthispropertyremainedexcellent.WhentheFundenteredintothisinvestment,thedirectpropertyyieldaf-terconstructionwasexpectedtobeintherangeof6.0%-6.3%.Thedirectpropertyyieldremainedstableinthelastquarterat7.2%anditisinlinewiththebudget.Thepropertyisfreeofanydefects.ThepropertyvalueincreasedfromEUR9.2milliontoEUR9.4million.
Walsroder Strasse, HanoverThe Walsroder Strasse property showed again a strong year2015.Theofficespacewasfullyletthrough2015andtheFundprolongedthecurrentfinancingwithSparkasseHannoverwithattractiveconditions.Theaveragedirectpropertyyieldfor2015was6.5%(2014:6.9%)andwasinlinewiththebudget.
Bessemerstraße, BerlinThelocalmanagementisactivelymaintainingtoenterintonu-merousofnewleaseagreementsintheBessemerstraßeproper-tythathavealreadyandshallfurtherresulttoincreaseinboththeaveragerentalincomepersq.m.andtheweightedaveragelease term. Due to the ongoing proactive assetmanagementandnewleaseagreementsthedirectpropertyyieldincreasedinQ42015to7.3%andtheweightedaverageleaseterm(WALT)couldbeincreasedbymaterial455%andtheaveragerentalin-comebyEUR0.60/m²sincetakeoverendof2013.
Tenant Concentration in the FundIn2015,80.3%ofthetotalgrossrentalincomewasgeneratedbythetenlargesttenantsoftherealestateportfolio,withSemi-narisrepresenting44.3%oftherevenueoftheentirepropertyportfolio.
RISk MANAGEMENT
WärtsiläBosch RexrothEssigerWVVandremedien GmbHIMP Computersysteme AGPostshopPhysiopointDAKOthers
Seminaris
44,3%
17,0%
8,2%2,3%
2,0%1,8%
1,3%1,3%1,2%1,0% 19,7%
Picture 2: Rental concentration of 10 largest tenants of the Fund subsidiaries
13BPT Hansa Lux SICAV-SIF Annual Report 2015
Theriskmanagement functionof theFund is responsibilityoftheInvestmentManager.ThemanageroftheFundisresponsib-leforidentifyingtheFund’smarketriskportfolio,preparepro-posalsregardingmarketrisklimits,monitorthelimitutilizationandproduceoverallriskanalysesofthemarketrisk.Themana-germaintainsalistofallriskmanagementrelatedinstructions,monitorthesecomparedtointernationallyrecommendedbestpractice,andinitiatechangesandimprovementswhenneeded.Themanager assessedat theendof thefinancial year that itiscurrentlyincompliancewithintendedriskmanagementfra-mework.
Principal risks faced by the Fund Market riskTheinvestmentsaresubjecttotherisksinrelationtotheowner-shipandoperationofrealestate,includingrisksassociatedwiththegeneraleconomicclimate,localreal-estateconditions,geo-graphicormarketconcentration,theabilityoftheInvestmentManagerorthird-partyborrowerstomanagetherealproper-ties,governmentregulationsandfluctuationsininterestrates.
The Fund is exposed tooffice, retail andhotelmarket inBer-linandofficemarketinHamburgandHannoverthroughitsin-vestmentsintoinvestmentpropertythroughsubsidiaries.
Credit riskThe Fund is aiming to diversify its investments, and counter-partieswithlowcreditriskarepreferred.Majoracquisitionandprojectfinancecreditrisksareminimizedbysharingtheseriskswithbanksandinsurancecompanies.Creditrisksrelatedtotheplacementofliquidfundsandtotradinginfinancialinstruments(counterpartycreditrisks)areminimizedbymakingagreementsonlywiththemostreputabledomesticandinternationalbanksandfinancialinstitutions.
Interest rate riskInconnectionwiththeinvestments,theFundhassecuredloanswithmidandlong-termfixedinterestrates.ThePPMallowstheFundtousehedgingtechniquesdesignedtoprotecttheFundagainstadversemovementsininterestrates.CurrentlytheFunddoesnouseanyhedginginstruments.Asat31December2015all loans in theportfolioarefixed interest rates.Asat31De-cember2015,theaverageloancostsoftheFundequalled4.81%(2014:4.90%).Typically,interestrateriskisfixedforthewholeloanterm,i.e.5to10years.
Liquidity riskLiquidityriskmeanstheriskoffailuretoliquidateopenposition,torealisetheassetsbytheduetimeattheprescribedfairpriceortorefinanceloanobligations.
Theinvestmentsarehighlyilliquidandtherecanbenoassuran-cethattheFundwillbeabletoexittheinvestmentsinatimelymanner.Bytheirnature,realestateinvestmentsorinterestsinothernon-publicentitiesaresubjecttoindustrycyclicality,do-wnturnsindemand,marketdisruptionsandthelackofavailablecapitalforpotentialpurchasersandarethereforeoftendifficultortimeconsumingtoliquidate.
TheInvestmentManagermakesitsbesteffortstoensuresuffi-cient liquiditybyefficientcashmanagement,bymaintaininga“liquiditybuffer”andbyorganizingcommittedanduncommitt-ed credit lines.
Inordertominimiseliquidityrisk,apartoftherealestatefundassets may be invested in deposits of credit institutions, inshort-termdebtsecuritiesandinothersecuritieswithhighlevelofliquidity.Also,derivativeinstrumentsmaybeusedtoreduceliquidityrisk.
TheFund’spolicyistomaintainsufficientcashandcashequiva-lentswithintheFundanditscontrolledentitiesorhaveavailab-lefundingthroughanadequateamountofcommittedcreditfa-cilitiestomeettheircommitmentsatagivendateinaccordancewithitsstrategicplans.
Foreign exchange riskCurrently, the Fund’s reporting currency is EUR, aswell as itsassets,liabilities,incomeandexpenses.Thus,fortheFundacur-rencyriskiscurrentlynotreallyexistent.
Operational riskOperationalriskrepresentsthepotentialforlossresultingfrominadequateorfailedinternalprocessesorsystems,humanfac-tors,orexternalevents,includingbusinessdisruptionsandsys-temfailure.TheFundisexposedtomanytypesofoperationalriskandattemptstomitigatethembymaintainingasystemofinternal control procedures and processes that are designed to control riskwithinappropriate levels.Also, traininganddeve-lopment of personnel competences, and active dialoguewithinvestorshelpthecompanytoidentifyandreducerisksrelatedtoitsoperation.
Financing structureThe Fund’s target leverage is 70%of debt financing. As at 31December2015,theFundlevelloan-to-valueamountsto58.4%(2014:59.1%)whichisbelowthetargetleverageduetoamor-tization of bank loans. The Fund’s general loan strategy is tohaveaselectednumberofstrongandtrustworthybanksasfi-nancingpartnerswithfocuson long-termcredit facilities.TheFundmaintains itscurrentrelationshipswith itsfinancingpar-tnersand isconsistentlybuildingupanewnetworkby takingaproactiveapproachincooperatingwiththebanks,especially
14 BPT Hansa Lux SICAV-SIF Annual Report 2015
afterthefinancialcrisiswhenbankshaveincreasedtheirfocusonriskmanagementandloanperformance.
Therehavebeennosignificantchangesinthefinancingstructu-reofthevehiclesincetheyearend2014,excepttheprolongati-onofthefinancingofWalsroderStraße.DuetotheentireFundloansarecarryingfixedinterestrate,theFundiscurrentlynotusinganyadditionalderivativefinancialinstruments.
As of 31 December 2015 the Fund’s subsidiaries were notbreachinganyofthebankloanagreementsandwereincomp-liancewiththeratiosmonitoredasspecifiedinthecontracts.Itisnotexpectedthatanyloancovenantwillbeinbreachintheforeseeablefuture.
Thekeyfinancingratiosoftheloanportfolioareprovidedtothetablebelow:
Thekeyfinancingratiosarecalculatedasfollows: Interest coverage ratioisbasedonprojectedNOIoverthefollowingfourquartersasaratioofprojectedinterestpay-mentsonbankloansoverthesameperiod.Thepurposeofthisratioistogiveanindicationofthevehicle’sgeneralabi-litytoserviceitsdebt.
Debt Service coverage ratioisbasedonprojectedNOIoverthefollowingfourquartersasaratioofprojected interestand scheduled amortisationpayments onbank loansoverthesameperiod.Thepurposeofthisratioistogiveanindi-cationofthevehicle’sgeneralabilitytoserviceitsdebt(bothscheduledpaymentsandinterests).
Weighted Average Cost of Debt is calculated taking theinterestrate(baserateandmargin)oneachexternaldebtinstrumentinthevehicleweightedbythesizeofsuchinstru-ments.
Weighted Average Maturity is calculated by taking thematurity on each external debt instrument in the vehicleweightedbythesizeofsuchinstruments.
Property level Loan-to-Value iscalculatedbytakingnomi-nalvalueofexternaldebtanddividingbythetotalfairvalueofinvestmentportfolio.
OUTLOOk FOR 2015
During2016,theFundwillconcentrateonthecompositionandperformanceofthecurrentpropertyportfolioincluding,ifpre-ferable,divestmentofadequatepropertiesandreinvestmentofequityintoBerlinassetstoallowforabetterrisk/returnbalan-ce. In linewith thisstrategy,adividenddistributionofcapitalgainsmaybeconsideredbytheBoardofDirectors.
Table 6: The key financing ratios on the loan portfolio of Fund’s subsidiaries
31 December 2015 31 December 2014Interestservicecoverageratio 2.15 2.05
DebtServicecoverageratio 1.37 1.30
WeightedAverageCostofDebtexcludingShareholdersLoans 4.81% 4.90%
WeightedAverageMaturityofDebtexcludingShareholdersLoans(years) 4.60 4.62
PropertylevelLoan-to-Value 58.4% 59.1%
15BPT Hansa Lux SICAV-SIF Annual Report 2015
TotheShareholdersofBPT Hansa Lux SICAV-SIF2,rued’AlsaceL-1122Luxembourg
Wehaveauditedtheaccompanyingconsolidatedfinancialsta-tementsofBPTHansaLuxSICAV-SIF,whichcomprisetheconso-lidatedstatementoffinancialpositionasat31December2015,theconsolidatedstatementofcomprehensiveincome,thecon-solidatedstatementofchangesinequityandtheconsolidatedstatementofcashflowsfortheyearthenended,andasummaryof significant accountingpolicies and other explanatory infor-mation.
Board of Directors’ responsibility for the consolidated finan-cial statementsTheBoardofDirectors is responsible for thepreparationandfairpresentationoftheseconsolidatedfinancialstatements inaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEuropeanUnionandforsuchinternalcontrolastheBoard ofDirectors determines is necessary to enable thepreparation and presentation of consolidated financial state-mentsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Responsibility of the “réviseur d’entreprises agréé”Ourresponsibilityistoexpressanopinionontheseconsolidat-edfinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditingasadopted for Luxembourg by the “Commission de SurveillanceduSecteurFinancier”.Thosestandardsrequirethatwecomplywith ethical requirements and plan and perform the audit toobtain reasonable assurance aboutwhether the consolidatedfinancialstatementsarefreefrommaterialmisstatement.
An audit involves performing procedures to obtain audit evi-denceabout theamountsanddisclosures in theconsolidatedfinancial statements. Theprocedures selecteddependon thejudgementof the“réviseurd’entreprisesagréé”, includingtheassessment of the risks ofmaterialmisstatement of the con-solidatedfinancial statements,whetherdue to fraudorerror.Inmaking those risk assessments, the “réviseur d’entreprisesagréé”considersinternalcontrolrelevanttotheentity’sprepa-rationandfairpresentationoftheconsolidatedfinancialstate-ments in order to design audit procedures that are appropriate inthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedand the reasonablenessof accountingestimatesmadebytheBoardofDirectors,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatements.
Webelieve that theauditevidencewehaveobtained is suffi-cientandappropriatetoprovideabasisforourauditopinion.
OpinionInouropinion,theconsolidatedfinancialstatementsgiveatrueandfairviewofthefinancialpositionofBPTHansaLuxSICAV-SIFasof31December2015,andof itsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewithInter-nationalFinancialReportingStandardsasadoptedbytheEuro-peanUnion.
Other matterSupplementary information included in theannual reporthasbeenreviewedinthecontextofourmandatebuthasnotbeensubject tospecificauditprocedurescarriedout inaccordancewiththestandardsdescribedabove.Consequently,weexpressnoopiniononsuchinformation.However,wehavenoobserva-tiontomakeconcerningsuchinformationinthecontextofthefinancialstatementstakenasawhole.
Ernst & YoungSociétéanonymeCabinetderévisionagréé
MichaelHORNSBYLuxembourg,15April2016
Independent auditor’s report
16 BPT Hansa Lux SICAV-SIF Annual Report 2015
’000 Euro Notes 2015 2014
Rental income 4,112 4,110
Costofrentalactivities 4 (875) (906)
Profit from property operating activities 3,237 3,204
Administrativeexpenses 5 (734) (730)
Centraladministrationandcustodyfees (51) (47)
Fund expenses (785) (777)
Otheroperatingincome 57 39
Otheroperatingexpenses (85) (26)
Grossvaluationgainsoninvestmentproperties 9 900 1,498
Grossvaluationlossesoninvestmentproperties 9 - (4,013)
Net operating profit before financing 3,324 (75)
Financial income 6 - 239
Financial expenses 7 (1,734) (1,719)
Net financing costs (1,734) (1,480)
Profit/ (loss) before tax 1,590 (1,555)
Income tax charge 8 (388) 390
Profit/ (loss) for the year 1,202 (1,165)
Other comprehensive income not to be reclassified to profit or loss in subsequent periods
Other comprehensive income, net of tax, not to be reclassified to - -
profit or loss in subsequent periods
Total comprehensive income/ (loss) for the year, net of tax 1,202 (1,165)
Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
Consolidated Statement of Comprehensive Income
17BPT Hansa Lux SICAV-SIF Annual Report 2015
’000 Euro Notes 2015 2014
Non-current assets
Investmentproperties 9 58,500 57,600
Deferredtaxasset 8 925 1,080
Total non-current assets 59,425 58,680
Current assets
Tradeandotherreceivables 10 1,087 1,179
Prepayments - -
Cashandcashequivalents 11 640 701
Total current assets 1,727 1,880
Total assets 61,152 60,560
Equity
Share capital 12a 24,348 24,348
Retained earnings 992 520
Total equity 25,340 24,868
Liabilities
Non-current liabilities
Interestbearingloansandborrowings 13 33,256 33,097
Deferredtaxliabilities 8 1,132 1,024
Othernon-currentliabilities 122 111
Total non-current liabilities 34,510 34,232
Current liabilities
Interestbearingloansandborrowings 13 909 957
Tradeandotherpayables 14 97 149
Incometaxpayable - 39
Othercurrentliabilities 15 296 315
Total current liabilities 1,302 1,460
Total liabilities 35,812 35,692
Total equity and liabilities 61,152 60,560
Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
Consolidated Statement of Financial Position
18 BPT Hansa Lux SICAV-SIF Annual Report 2015
’000 EuroShare
capitalRetained earnings
Total equity
As at 1 January 2014 24,348 1,685 26,033
Netlossfortheyear - (1,165) (1,165)
As at 31 December 2014 24,348 520 24,868
Netprofitfortheyear - 1,202 1,202
Dividendspaid (730) (730)
Total comprehensive income - 472 472
As at 31 December 2015 24,348 992 25,340
Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
Consolidated Statement of Changes in Equity
19BPT Hansa Lux SICAV-SIF Annual Report 2015
’000 Euro Notes 2015 2014
Operating activities
Profit (loss) before tax 1,590 (1,555)
Adjustmentsfornon-cashitems:
Valueadjustmentofinvestmentproperties,net 9 (900) 2,515
Changeinallowanceforbaddebts 4 (13) (40)
Financial income 6 - (239)
Write-offofloanadministrationfees 7 18 15
Financial expenses 7 1,687 1,704
Otherinterestexpenses 7 29 -
Workingcapitaladjustments:
Decrease/(Increase)intradeandotheraccountsreceivables 92 (121)
Increaseinothernon-currentliabilities 11 98
Increase/(Decrease)intradeandotheraccountspayable (52) 62
Decreaseinothercurrentliabilities (19) (109)
Paid income tax (180) (48)
Net cash flow from operating activities 2,263 2,282
Investing activities
Capitalexpenditureoninvestmentproperties 9 - (115)
Net cash flow from investing activities - (115)
Financing activities
Proceedsfrombankloans 13 1,000 -
Dividendsdistribution 12b (730) -
Reimbursementofbankloans 13 906 (1,371)
Interest paid (1,688) (1,704)
Net cash flow from financing activities (2,324) (3,075)
Net change in cash and cash equivalents (61) (908)
Cash and cash equivalents at the beginning of the year 701 1,609
Cash and cash equivalents at the end of the year 11 640 701
Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
Consolidated Statement of Cash Flows
20 BPT Hansa Lux SICAV-SIF Annual Report 2015
Notes to the Consolidated Financial Statements
1. GENERAL INFORMATION
BPTHansaLuxSICAV-SIFwasincorporatedintheGrandDuchyofLuxembourgon23October2006asa“sociétéanonyme”undertheLuxembourglawoncommercialcompaniesdated10August1915;amendedandregisteredasa“sociétéd’investissementàCapitalvariable”(“SICAV-SIF”)undertherelatedlawdated13February2007.
TheArticlesofIncorporation(the“Articles”)havebeenpublishedon26January2007intheMemorialC,RecueildesSociétésetAssociations(the“Mémorial”).BPTHansaLuxSICAV-SIFisregisteredattheRegistredeCommerce,Luxembourg,undernumberB122.072.TheArticlesofAssociationhavebeenamendedforthelasttimeon24June2010,publishedintheMémorialon16August2010.
BPTHansaLuxSICAV-SIFisestablishedforalimitedperiodsoastoendon3May2023butmaybedissolvedpriortothistermbyaresolutionoftheshareholders,subjecttothequorumandmajorityrequirementsfortheamendmentoftheArticles.
Asfrom16August2013theCommissionfortheSupervisionoftheFinancialSector(CommissiondeSurveillanceduSecteurFinan-cier,the“CSSF”)hasregisteredBPTHansaLuxSICAV-SIFasaself-managedalternativeinvestmentfund(“AIF”)inLuxembourgundertheLuxembourgLawof12July2013onalternativeinvestmentfundmanagersandtheEuropeanUnionDirectiveonAlternativeInvestmentFundManagers(“AIFMD”).
TheFundconsistsofBPTHansaLuxSICAV-SIFandthesubsidiariesdisclosedinNote21(the“Fund”).
BPTHansaLuxSICAV-SIFistheultimateparentandcontrollingentity.TheexclusiveobjectofBPTHansaLuxSICAV-SIFistoinvestinsecuritiesrepresentingriskcapitalinordertoprovideitsinvestorswiththebenefitoftheresultofthemanagementofitsassetsinconsiderationoftherisktheyincur.BPTHansaLuxSICAV-SIFisofferinganopportunitytoinvestinadiversifiedrealestatein-vestmentfundfocussingontheNorthernGermanrealestatemarket.
TheconsolidatedfinancialstatementsoftheFundfortheyearendedon31December2015wereauthorisedforissueinaccordancewitharesolutionoftheBoardofDirectorsof15April2016andwillbesubmittedtotheannualgeneralmeetingofshareholderson4May2016.
2. SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES
Theprincipalaccountingpoliciesappliedinthepreparationofthesefinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedunlessotherwisestatedinthefollowingtext.
Basis of preparationTheFund’sconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththeInternationalFinancialReportingStan-dards(the‘IFRS’)asadoptedforuseintheEuropeanUnion.
New and amended standards and interpretationsTheFundappliedforthefirsttimecertainstandardsandamendments,whichareeffectiveforannualperiodsbeginningonorafter1January2015.TheFundhasnotearlyadoptedanyotherstandard,interpretationoramendmentthathasbeenissuedbutisnotyeteffective.Thenatureandtheeffectofthesechangesaredisclosedbelow.Althoughthesenewstandardsandamendmentsappliedforthefirsttimein2015,theydidnothaveamaterialimpactontheannualconsolidatedfinancialstatementsoftheFund.Thenatureandtheimpactofeachnewstandardoramendmentisdescribedbelow:
Amendments to IAS 19 Defined Benefit Plans: Employee ContributionsIAS19requiresanentitytoconsidercontributionsfromemployeesorthirdpartieswhenaccountingfordefinedbenefitplans.
21BPT Hansa Lux SICAV-SIF Annual Report 2015
Wherethecontributionsarelinkedtoservice,theyshouldbeattributedtoperiodsofserviceasanegativebenefit.Theseamend-mentsclarifythat,iftheamountofthecontributionsisindependentofthenumberofyearsofservice,anentityispermittedtorecognisesuchcontributionsasareductionintheservicecostintheperiodinwhichtheserviceisrendered,insteadofallocatingthecontributionstotheperiodsofservice.Thisamendmentiseffectiveforannualperiodsbeginningonorafter1July2014.ThisamendmentisnotrelevanttotheFund,sincenoneoftheentitieswithintheFundhasdefinedbenefitplanswithcontributionsfromemployeesorthirdparties.
Annual Improvements 2010-2012 CycleWiththeexceptionoftheimprovementrelatingtoIFRS2Share-basedPaymentappliedtoshare-basedpaymenttransactionswithagrantdateonorafter1July2014,allotherimprovementsareeffectiveforaccountingperiodsbeginningonorafter1July2014.TheFundhasappliedtheseimprovementsforthefirsttimeintheseconsolidatedfinancialstatements.Theyinclude:
IFRS 2 Share-based PaymentThisimprovementisappliedprospectivelyandclarifiesvariousissuesrelatingtothedefinitionsofperformanceandservicecondi-tionswhicharevestingconditions.TheclarificationsareconsistentwithhowtheFundhasidentifiedanyperformanceandserviceconditionswhicharevestingconditionsinpreviousperiods.Inaddition,theFundhadnotgrantedanyawardsduringthesecondhalfof2014and2015.Thus,theseamendmentsdidnotimpacttheFund’sfinancialstatementsoraccountingpolicies.
IFRS 3 Business CombinationsTheamendment isappliedprospectivelyandclarifies thatall contingent considerationarrangements classifiedas liabilities (orassets)arisingfromabusinesscombinationshouldbesubsequentlymeasuredatfairvaluethroughprofitorlosswhetherornottheyfallwithinthescopeofIAS39.ThisisconsistentwiththeFund’scurrentaccountingpolicyand,thus,thisamendmentdidnotimpacttheFund’saccountingpolicy.
IFRS 8 Operating SegmentsTheamendmentsareappliedretrospectivelyandclarifythat:• Anentitymustdisclosethejudgementsmadebymanagementinapplyingtheaggregationcriteriainparagraph12ofIFRS8,
includingabriefdescriptionofoperatingsegmentsthathavebeenaggregatedandtheeconomiccharacteristics(e.g.,salesandgrossmargins)usedtoassesswhetherthesegmentsare‘similar’
• Thereconciliationofsegmentassetstototalassetsisonlyrequiredtobedisclosedifthereconciliationisreportedtothechiefoperatingdecisionmaker,similartotherequireddisclosureforsegmentliabilities
IAS 24 Related Party DisclosuresTheamendmentisappliedretrospectivelyandclarifiesthatamanagemententity(anentitythatprovideskeymanagementper-sonnelservices)isarelatedpartysubjecttotherelatedpartydisclosures.Inaddition,anentitythatusesamanagemententityisrequiredtodisclosetheexpensesincurredformanagementservices.Thisamendmenthasnomaterial impactonthegroup’sfinancialreportingastransactionsbetweentheFundanditsmanagementcompanyhavealreadybeendisclosedwithintherelatedpartiesnoteshistorically.
Annual Improvements 2011-2013 CycleTheseimprovementsareeffectivefrom1July2014andtheGrouphasappliedtheseamendmentsforthefirsttimeintheseconsolidatedfinancialstatements.Theyinclude:
IFRS 3 Business CombinationsTheamendmentisappliedprospectivelyandclarifiesforthescopeexceptionswithinIFRS3that:• Jointarrangements,notjustjointventures,areoutsidethescopeofIFRS3 • Thisscopeexceptionappliesonlytotheaccountinginthefinancialstatementsofthejointarrangementitself
TheFundisnotajointarrangement,andthusthisamendmentisnotrelevantfortheFundanditssubsidiaries.
IFRS 13 Fair Value MeasurementTheamendmentisappliedprospectivelyandclarifiesthattheportfolioexceptioninIFRS13canbeappliednotonlytofinancial
22 BPT Hansa Lux SICAV-SIF Annual Report 2015
assetsandfinancialliabilities,butalsotoothercontractswithinthescopeofIAS39.TheFunddoesnotapplytheportfolioexceptioninIFRS13.
IAS 40 Investment PropertyThe description of ancillary services in IAS 40 differentiates between investment property and owner-occupied property (i.e.,property,plantandequipment).TheamendmentisappliedprospectivelyandclarifiesthatIFRS3,andnotthedescriptionofan-cillaryservicesinIAS40,isusedtodetermineifthetransactionisthepurchaseofanassetorabusinesscombination.Inpreviousperiods,theFundhasreliedonIFRS3,notIAS40,indeterminingwhetheranacquisitionisofanassetorisabusinessacquisition.Thus,thisamendmentdidnotimpacttheaccountingpolicyoftheFund.
Standards issued but not yet effectiveThestandardsandinterpretationsthatareissued,butnotyeteffective,uptothedateofissuanceoftheFund’sfinancialstatementsaredisclosedbelow.TheFundintendstoadoptthesestandards,ifapplicable,whentheybecomeeffective.
IFRS 9 Financial InstrumentsInJuly2014,theIASBissuedthefinalversionofIFRS9FinancialInstrumentsthatreplacesIAS39FinancialInstruments:RecognitionandMeasurementandallpreviousversionsofIFRS9.IFRS9bringstogetherallthreeaspectsoftheaccountingforfinancialinstru-mentsproject:classificationandmeasurement,impairmentandhedgeaccounting.IFRS9iseffectiveforannualperiodsbeginningonorafter1January2018,withearlyapplicationpermitted.Exceptforhedgeaccounting,retrospectiveapplicationisrequiredbutprovidingcomparativeinformationisnotcompulsory.Forhedgeaccounting,therequirementsaregenerallyappliedprospectively,withsomelimitedexceptions.
TheFundiscurrentlyassessingtheimpactofIFRS9andplanstoadoptthenewstandardontherequiredeffectivedate.
IFRS 15 Revenue from Contracts with CustomersIFRS15wasissuedinMay2014andestablishesafive-stepmodeltoaccountforrevenuearisingfromcontractswithcustomers.Un-derIFRS15,revenueisrecognisedatanamountthatreflectstheconsiderationtowhichanentityexpectstobeentitledinexchangefortransferringgoodsorservicestoacustomer.
ThenewrevenuestandardwillsupersedeallcurrentrevenuerecognitionrequirementsunderIFRS.Eitherafullretrospectiveapp-licationoramodifiedretrospectiveapplicationisrequiredforannualperiodsbeginningonorafter1January2018,whentheIASBfinalisestheiramendmentstodefertheeffectivedateofIFRS15byoneyear.Earlyadoptionispermitted.TheFundplanstoadoptthenewstandardontherequiredeffectivedateusingthefullretrospectivemethod.
Amendments to IFRS 11 Joint Arrangements: Accounting for Acquisitions of InterestsTheamendmentstoIFRS11requirethatajointoperatoraccountingfortheacquisitionofaninterestinajointoperation,inwhichtheactivityofthejointoperationconstitutesabusiness,mustapplytherelevantIFRS3principlesforbusinesscombinationsac-counting.Theamendmentsalsoclarifythatapreviouslyheldinterestinajointoperationisnotremeasuredontheacquisitionofanadditionalinterestinthesamejointoperationwhilejointcontrolisretained.Inaddition,ascopeexclusionhasbeenaddedtoIFRS11tospecifythattheamendmentsdonotapplywhenthepartiessharingjointcontrol,includingthereportingentity,areundercommoncontrolofthesameultimatecontrollingparty.
Theamendmentsapplytoboththeacquisitionoftheinitialinterestinajointoperationandtheacquisitionofanyadditionalinte-restsinthesamejointoperationandareprospectivelyeffectiveforannualperiodsbeginningonorafter1January2016,withearlyadoptionpermitted.Theimpactoftheadoptionoftheamendmentscanonlybeassessedintheyearofinitialapplicationoftheamendments,asthiswilldependontheacquisitionsofjointoperationsthattakeplaceduringthatreportingperiod.TheFunddoesnotintendtoadopttheamendmentsearly;therefore,itisnotpossibletoestimatetheimpactadoptionoftheamendmentswillhaveontheFund’sfinancialstatements.
Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and AmortisationTheamendmentsclarifytheprincipleinIAS16andIAS38thatrevenuereflectsapatternofeconomicbenefitsthataregeneratedfromoperatingabusiness(ofwhichtheassetispart)ratherthantheeconomicbenefitsthatareconsumedthroughuseoftheasset.
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Asaresult,arevenue-basedmethodcannotbeusedtodepreciateproperty,plantandequipmentandmayonlybeusedinverylimitedcircumstancestoamortiseintangibleassets.Theamendmentsareeffectiveprospectivelyforannualperiodsbeginningonorafter1January2016,withearlyadoptionpermitted.TheseamendmentsarenotexpectedtohaveanyimpacttotheFundgiventhattheFundhasnotusedarevenue-basedmethodtodepreciateitsnon-currentassets.
Amendments to IAS 27: Equity Method in Separate Financial StatementsTheamendmentswillallowentitiestousetheequitymethodtoaccountforinvestmentsinsubsidiaries,jointventuresandassocia-tesintheirseparatefinancialstatements.EntitiesalreadyapplyingIFRSandelectingtochangetotheequitymethodinitsseparatefinancialstatementswillhavetoapplythatchangeretrospectively.Forfirst-timeadoptersofIFRSelectingtousetheequitymethodinitsseparatefinancialstatements,theywillberequiredtoapplythismethodfromthedateoftransitiontoIFRS.Theamendmentsareeffectiveforannualperiodsbeginningonorafter1January2016,withearlyadoptionpermitted.TheseamendmentswillnothaveanyimpactontheFund’sconsolidatedfinancialstatements.
Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associateor Joint VentureTheamendmentsaddresstheconflictbetweenIFRS10andIAS28indealingwiththelossofcontrolofasubsidiarythatissoldorcontributedtoanassociateorjointventure.Theamendmentsclarifythatthegainorlossresultingfromthesaleorcontributionofassetsthatconstituteabusiness,asdefinedinIFRS3,betweenaninvestoranditsassociateorjointventure,isrecognisedinfull.Anygainorlossresultingfromthesaleorcontributionofassetsthatdonotconstituteabusiness,however,isrecognisedonlytotheextentofunrelatedinvestors’interestsintheassociateorjointventure.Theseamendmentsmustbeappliedprospectivelyandareeffectiveforannualperiodsbeginningonorafter1January2016,withearlyadoptionpermitted.TheseamendmentsarenotexpectedtohaveanyimpactontheFund.
Annual Improvements 2012-2014 CycleTheseimprovementsareeffectiveforannualperiodsbeginningonorafter1January2016.Theyinclude:
IFRS 5 Non-current Assets Held for Sale and Discontinued OperationsAssets(ordisposalgroups)aregenerallydisposedofeitherthroughsaleordistributiontoowners.Theamendmentclarifiesthatchangingfromoneofthesedisposalmethodstotheotherwouldnotbeconsideredanewplanofdisposal,ratheritisacontinuationoftheoriginalplan.Thereis,therefore,nointerruptionoftheapplicationoftherequirementsinIFRS5.Thisamendmentmustbeappliedprospectively.
IFRS 7 Financial Instruments: Disclosures(i) Servicing contractsTheamendmentclarifiesthataservicingcontractthatincludesafeecanconstitutecontinuinginvolvementinafinancialasset.AnentitymustassessthenatureofthefeeandthearrangementagainsttheguidanceforcontinuinginvolvementinIFRS7inordertoassesswhetherthedisclosuresarerequired.Theassessmentofwhichservicingcontractsconstitutecontinuinginvolvementmustbedoneretrospectively.However,therequireddisclosureswouldnotneedtobeprovidedforanyperiodbeginningbeforetheannualperiodinwhichtheentityfirstappliestheamendments.
(ii) Applicability of the amendments to IFRS 7 to condensed interim financial statementsTheamendmentclarifiesthattheoffsettingdisclosurerequirementsdonotapplytocondensedinterimfinancialstatements,unlesssuchdisclosuresprovideasignificantupdatetotheinformationreportedinthemostrecentannualreport.Thisamendmentmustbeappliedretrospectively.
IAS 19 Employee BenefitsTheamendmentclarifiesthatmarketdepthofhighqualitycorporatebondsisassessedbasedonthecurrencyinwhichtheobliga-tionisdenominated,ratherthanthecountrywheretheobligationislocated.Whenthereisnodeepmarketforhighqualitycorpo-ratebondsinthatcurrency,governmentbondratesmustbeused.Thisamendmentmustbeappliedprospectively.
IAS 34 Interim Financial ReportingTheamendmentclarifiesthattherequiredinterimdisclosuresmusteitherbeintheinterimfinancialstatementsorincorporated
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bycross-referencebetweentheinterimfinancialstatementsandwherevertheyareincludedwithintheinterimfinancialreport(e.g.,inthemanagementcommentaryorriskreport).Theotherinformationwithintheinterimfinancialreportmustbeavailabletousersonthesametermsastheinterimfinancialstatementsandatthesametime.Thisamendmentmustbeappliedretrospectively.TheseamendmentsarenotexpectedtohaveanyimpactontheGroup.
Amendments to IAS 1 Disclosure InitiativeTheamendmentstoIAS1PresentationofFinancialStatementsclarify,ratherthansignificantlychange,existingIAS1requirements.Theamendmentsclarify:• ThematerialityrequirementsinIAS1• Thatspecificlineitemsinthestatement(s)ofprofitorlossandOCIandthestatementoffinancialpositionmaybedisaggregated• Thatentitieshaveflexibilityastotheorderinwhichtheypresentthenotestofinancialstatements• ThattheshareofOCIofassociatesandjointventuresaccountedforusingtheequitymethodmustbepresentedinaggregateas
asinglelineitem,andclassifiedbetweenthoseitemsthatwillorwillnotbesubsequentlyreclassifiedtoprofitorloss
Furthermore,theamendmentsclarifytherequirementsthatapplywhenadditionalsubtotalsarepresentedinthestatementoffinancialpositionandthestatement(s)ofprofitorlossandOCI.Theseamendmentsareeffectiveforannualperiodsbeginningonorafter1January2016,withearlyadoptionpermitted.TheseamendmentsarenotexpectedtohaveanyimpactontheFund.
Amendments to IFRS 10, IFRS 12 and IAS 28 Investment Entities: Applying the Consolidation ExceptionTheamendmentsaddressissuesthathaveariseninapplyingtheinvestmententitiesexceptionunderIFRS10.TheamendmentstoIFRS10clarifythattheexemptionfrompresentingconsolidatedfinancialstatementsappliestoaparententitythatisasubsidiaryofaninvestmententity,whentheinvestmententitymeasuresallofitssubsidiariesatfairvalue.Furthermore,theamendmentstoIFRS10clarifythatonlyasubsidiaryofaninvestmententitythatisnotaninvestmententityitselfandthatprovidessupportservicestotheinvestmententityisconsolidated.Allothersubsidiariesofaninvestmententityaremeasuredatfairvalue.TheamendmentstoIAS28allowtheinvestor,whenapplyingtheequitymethod,toretainthefairvaluemeasurementappliedby the investmententityassociateor jointventure to its interests insubsidiaries.Theseamendmentsmustbeappliedretrospectivelyandareeffectiveforannualperiodsbeginningonorafter1January2016,withearlyadoptionpermitted.TheseamendmentsarenotexpectedtohaveanyimpactontheFund.
The significant accounting policies applied by the Fund are as follows:
2a. Presentation currency TheconsolidatedfinancialstatementshavebeenpreparedinEuro(EUR),whichisBPTHansaLuxSICAV-SIF’sfunctionalandpresen-tationcurrency.
Unlessstatedotherwise,allvaluesareroundedtothenearestthousandsofEuro.Theconsolidatedfinancialstatementsarepre-sentedinthousandsofEuro.
2b. Consolidated financial statementsTheconsolidatedfinancialstatementsoftheFundincludeBPTHansaLuxSICAV-SIFandsubsidiaries(Note21)ofwhichBPTHansaLuxSICAV-SIFdirectlyor indirectlyholdsmorethan50percentofthevotingrights.Theequityandnet incomeattributabletonon-controllinginterests,ifany,areshownseparatelyintheconsolidatedstatementoffinancialpositionandconsolidatedstate-mentofcomprehensiveincome.
TheconsolidatedfinancialstatementsarepreparedonthebasisoffinancialstatementsofBPTHansaLuxSICAV-SIFanditssubsidia-riesbyconsolidationoffinancialstatements’itemsofauniformnature.ThefinancialstatementsusedforconsolidationhavebeenpreparedapplyingFund’saccountingpolicies.
Inter-companybalancesandtransactions,includingunrealisedprofitsandlosses,areeliminatedinconsolidation.
CompaniesacquiredorsoldduringayearareincludedintothefinancialstatementsfromthedateBPTHansaLuxSICAV-SIFobtainscontroltothedatecontrolceases,respectively.
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Thepurchasemethod isapplied in theacquisitionofnewsubsidiarieswhichqualifyasbusinesscombination,underwhich theidentifiableassetsandliabilitiesandcontingentliabilitiesofthesecompaniesaremeasuredatfairvalueattheacquisitiondate.Costoftheacquiredcompanyconsistsoffairvalueofthepaidconsideration(cashorownshares).Ifthefinaldeterminationoftheconsiderationisconditionedbyoneorseveralfutureevents,theseareonlytakenintoaccountiftherelevanteventislikelyandtheamountcanbecalculatedreliably.Subsequentchangestothefairvalueofthecontingentconsiderationwhichisdeemedtobeanassetorliability,isrecognisedinaccordancewithIAS39eitherinprofitorlossoraschangetoothercomprehensiveincome.Ifthecontingentconsiderationisclassifiedasequity,itshallnotbere-measureduntilitisfinallysettledwithinequity.
Whenthetransactionhasnotbeenidentifiedasbeingabusinesscombination,thetransactionhasbeenaccountedforasacqui-sitionofindividualassetsandliabilitieswheretheinitialpurchaseconsiderationisallocatedtotheseparateassetsandliabilitiesacquired,basedontheirrelativefairvalues.
AssetsarerecognisedintheconsolidatedstatementoffinancialpositionwhenitisprobablethatfutureeconomicbenefitswillflowtotheFundandthevalueoftheassetscanbemeasuredreliably.
Liabilitiesarerecognisedintheconsolidatedstatementoffinancialpositionwhentheyareprobableandcanbemeasuredreliably.Oninitialrecognition,assetsandliabilitiesaremeasuredatcost.Subsequently,assetsandliabilitiesaremeasuredasdescribedforeachfinancialstatementitembelow.
FollowingthePrivatePlacementmemorandum(“PPM”)ofBPTHansaLuxSICAV-SIF,NorthernHorizonCapitalGmbH(formerBPTAssetManagementGermanyGmbH)and/orthirdpartiesareactingasalimitedpartnerintheSPVSandareholdingminoritysha-reholdings.InlinewiththePPMtheFundstructuredisclosesthefollowingminorityshareholdingintheFund’ssubsidiariesasat31December2015:
• NorthernHorizonCapitalGmbH(formerBPTAssetManagementGermanyGmbH)owning6.18%participationinBPTGmbH&Co.VermögensverwaltungKG,0.01%participationinBPT1GmbH&Co.VermögensverwaltungKGand0.01%inBPT3GmbH&Co.VermögensverwaltungKG;
• BauwoGrundstücksgesellschaftGmbHowning5.99%participationinBPT3GmbH&Co.VermögensverwaltungKG;• KommunalprojektprivatepublicpartnershipsGmbHowning6%participationinBPT2GmbH&Co.KG.
InlinewiththePPMtheFundenjoysfullbenefitoftheeconomicinterestinthesesubsidiaries,thusnominorityinterestisrecorded.
2c. Investment propertiesInvestmentpropertiesarerealestateproperties(landorabuilding–orpartofabuilding–orboth)held(bytheownerorbythelesseeunderafinancelease)toearnrentalsorforcapitalappreciationorboth,ratherthanfortheuseintheproductionorsupplyofgoodsorservicesorforadministrativepurposes;orsaleintheordinarycourseofbusiness.
Investmentpropertyisinitiallyrecordedatcostincludingcostsdirectlyresultingfromtheacquisitionsuchastransfertaxesandle-galfees.Costs,addingneworimprovedqualitiestoaninvestmentpropertycomparedtothedateofacquisition,andwhichtherebyimprovethefutureyieldoftheproperty,areaddedtocostasanimprovement.Costs,whichdonotaddneworimprovedqualitiestoaninvestmentproperty,areexpensedinprofitorlossunderoperatingexpenses.
UnderIAS40,investmentpropertiesarevaluedtofairvalue,asdeterminedbyindependentappraisers,beingthepricethatwouldbereceivedtosellanassetinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Valuationsarealsoundertakenonacquisitionsandcontributionsinkind.Twoindependentvaluators:bulwiengesaappraisalGmbHandDr.-Ing.EgbertKrellmannhavebeenappointedasappraisersoftheFundfortheyears2014and2015.Theirvaluationsareprepared inaccor-dancewiththePracticeStatementsandRelevantGuidanceNotesoftheRICSAppraisalandValuationandapprovedbyboththeInternationalValuationStandardsCommittee(IVSC)andbytheEuropeanGroupofValuers’Association(TEGoVA)andbyapplyingthemethodologyandvaluationguidelinesassetoutbytheRoyalInstitutionofCharteredSurveyorsintheUnitedKingdomandinaccordancewithIAS40.
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Valuationsarepreparedusingthedirectcapitalizationapproach.Underthedirectcapitalizationapproach,theincomeandexpen-sesofoneyeararestabilisedandthenetresultingoperatingincomeiscapitalisedatacapitalisationorreturnrateinproportiontothetitletothesubjectproperty.Suchincomecapitalisationconsidersthecompetitivereturnresultingfromalternativeinstrumentsofinvestmentintorealestateorotherproperty.Thiscalculationexcludestheeffectsoftaxesanddisposalcostsbornebytheseller,andisnetoftransactioncostsnormallybornebythepurchaser.Depreciationisnotprovidedoninvestmentproperties.
Thefairvaluedoesnotnecessarilyrepresenttheliquidationvalueofthepropertieswhichwouldbedependentuponthepricenegotiatedatthetimenetofsellingcosts.Thefairvalueis largelybasedonestimatesasdescribedabovewhichareinherentlysubjective.
Theyieldrequirement(discountfactor)isdeterminedforeachproperty.
Valueadjustmentsarerecognisedinprofitorlossundertheitems“Grossvaluationgainsoninvestmentproperties”and“Grossvaluationlossesoninvestmentproperties”.
2d. Accounts receivableReceivablesaremeasuredatnominalvaluelessallowancesfordoubtfuldebts,ifany.Themanagementassessesspecificprovisionsonacustomerbycustomerbasisthroughouttheyear.
2e. Cash and cash equivalentsCashincludescashonhandandcashwithbanks.Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilycon-vertibletoknownamountsofcashwithoriginalmaturitiesofthreemonthsorlessandthataresubjecttoaninsignificantriskofchangeinvalue.
2f. DividendsProposeddividendsarerecognizedasaliabilityatthetimeofdeclaration.
2g. Interest bearing loans and borrowingsDebtstobanksandfinancialinstitutionsareinitiallyrecognisedatfairvaluelesstransactioncostsincurred.Subsequently,thesedebtsitemsaremeasuredatamortisedcostusingtheeffectiveinterestratemethod.
TheFundclassifiesitsfinancialliabilitiesascurrentwhentheyareduetobesettledwithintwelvemonthsafterreportingdate,evenif:
(i) Theoriginaltermwasforaperiodlongerthantwelvemonths;and(ii) Anagreementtorefinance,ortoreschedulepayments,onalong-termbasisiscompletedafterthereportingdateandbefore
theconsolidatedfinancialstatementsareauthorisedforissue.
Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelledorexpired.
Whereanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognisingoftheoriginalliabilityandtherecognitionofanewliability,andthedifferenceintherespectivecarryingamountsisrecognisedinprofitorloss.
2h. Other liabilitiesOtherliabilities,comprisingpayablestosuppliers,guaranteedepositsreceivedfromtenantsandotherpayables,aremeasuredatamortisedcostusingtheeffectiveinterestratemethod.
Deferredincomeisrecognisedunderliabilitiesandincludesreceivedpaymentsforfutureincome.
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2i. Financial assetsTheFundrecognisesfinancialassetsonitsconsolidatedstatementoffinancialpositionwhen,andonlywhen,theFundbecomesapartytothecontractualprovisionsoftheinstrument.
FinancialassetsinthescopeofIAS39areclassifiedaseitherfinancialassetsatfairvaluethroughprofitorloss,loansandrecei-vables,held-to-maturityinvestments,oravailable-for-salefinancialassets,asappropriate.Whenfinancialassetsarerecognisedinitially,theyaremeasuredatfairvalue,plus,incaseofinvestmentsnotatfairvaluethroughprofitorloss,directlyattributabletransactioncosts.
TheFunddeterminestheclassificationofitsfinancialassetsafterinitialrecognitionand,whereallowedandappropriate,re-evalua-testhisdesignationateachfinancialyear-end.
All“regularway”purchasesandsalesoffinancialassetsthatrequiredeliverywithinthetimeframeestablishedbyregulationormarketconventionarerecognisedattradedate(thedatethattheFundcommitstopurchaseorselltheasset),otherwisesuchtransactionsaretreatedasderivativesuntilthesettlementday.
Afinancialasset(or,whereapplicable,apartofafinancialassetorpartofagroupofsimilarfinancialassets)isderecognisedwhere:
(i) Therightstoreceivecashflowsfromtheassethaveexpired;(ii) TheFundhastransferreditsrightstoreceivecashflowsfromtheasset,orretainedtherighttoreceivecashflowsfromtheasset,
buthasassumedanobligationtopaytheminfullwithoutmaterialdelaytoathirdpartyundera“pass-through”arrangement;and
(iii)TheFundeither(a)hastransferredsubstantiallyalltherisksandrewardsoftheasset,or(b)hasneithertransferrednorretainedsubstantiallyalltherisksandrewardsoftheasset,buthastransferredcontroloftheasset.
2j. Contingent liabilitiesContingentliabilitiesarenotrecognisedintheconsolidatedfinancialstatements.Theyaredisclosedunlessthepossibilityofanoutflowofresourcesembodyingeconomicbenefitsisremote.
Acontingentassetisnotrecognisedintheconsolidatedfinancialstatementsbutdisclosedwhenaninfloworeconomicbenefitsispossible.
2k. Subsequent eventsPost-reportingdateeventsthatprovideadditionalinformationabouttheFund’spositionatthereportingdate(adjustingevents)arereflectedintheconsolidatedfinancialstatements.Post-reportingdateeventsthatarenotadjustingeventsaredisclosedinthenoteswhenmaterial.
2l. Rental incomeTheFundleasesitsbuildingstocustomersunderagreementsthatareclassifiedasoperatinglease.
Rentalincomerepresentsrentschargedtocustomersandisrecognisedonastraightlinebasis,netofanysalestaxes,overtheleaseperiodtothefirstbreakoption.
Expensereimbursementincomearerecognisedongrossbasisandincludedinprofitorlosswhenthecompanyisnotactingasagentonbehalfofthirdpartiesandchargingthecommissionsforthecollections.Otherwise,revenueisthecommissions.
2m. Expenses recognitionExpensesareaccountedforanaccrualbasis.Expensesarechargedtoprofitorloss,exceptforthoseincurredintheacquisitionofaninvestmentpropertywhicharecapitalisedaspartofthecostofinvestmentandcostsincurredtoacquireborrowings.Operatingexpensescomprisecostsincurredtoearnrentalrevenueduringthefinancialyeartocoveroperationsandmaintenanceoftheownproperties.
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2n. Administrative expensesAdministrativeexpensesincludecostsandexpenseswhichwereincurredforthemanagementoftheinvestmentpropertiesandtheFundduringtheyear.
2o. Current taxationTheconsolidatedsubsidiariesoftheFundaresubjecttotaxationinthecountriesinwhichtheyoperate.Currenttaxationisprovidedforattheapplicablecurrentratesontherespectivetaxableprofits.
2p. Deferred taxationDeferredincometaxisprovidedusingtheliabilitymethodontemporarydifferencesatthereportingdatebetweentaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.
Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences,except:
i) Wherethedeferredtaxliabilityarisesfromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and
ii) Inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandinterestsinjointven-tures,wherethetimingofthereversalofthetemporarydifferencescanbecontrolledanditisprobablethatthetemporarydifferenceswillnotreverseintheforeseeablefuture.
Deferredincometaxassetsarerecognisedforalldeductibletemporarydifferences,carryforwardofunusedtaxcreditsandunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,carryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilisedexcept:
i) Wherethedeferredincometaxassetrelatingtothedeductibletemporarydifferencearisesfromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheac-countingprofitnorthetaxableprofitorloss;and
ii) Inrespectofdeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandinterestinjointven-tures,deferredtaxassetsarerecognisedonlytotheextentthatitisprobablethatthetemporarydifferenceswillreverseintheforeseeablefutureandtaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.
Thecarryingamountofdeferredincometaxassetsisreviewedateachreportingdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredincometaxassetstobeutilised.Unre-cogniseddeferredincometaxassetsarere-assessedateachreportingdateandarerecognisedtotheextentthatithasbecomeprobablethatfuturetaxableprofitwillallowthedeferredtaxassetstoberecovered.
Deferredincometaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheyearwhenanassetisrea-lisedortheliabilitysettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthereportingdate.
Deferredtaxassetsanddeferredtaxliabilitiesareoffset,ifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxesrelatetothesametaxableentityandthesametaxationauthority.
Deferredincometaxrelatingtoitemsrecogniseddirectlyinequityisrecognisedinequityandnotinprofitorloss.Deferredtaxitemsarerecognisedincorrelationtotheunderlyingtransactioneitherinothercomprehensiveincomeordirectlyinequity.
2q. Fair value measurementsTheFundmeasurescertainfinancialinstrumentssuchasderivatives,andnon-financialassetssuchasinvestmentproperty,atfairvalueattheendofeachreportingperiod.Also,fairvaluesoffinancialinstrumentsmeasuredatamortisedcostaredisclosedinthefinancialstatements.
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Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementisbasedonthepresumptionthatthetransactiontoselltheassetortransfertheliabilitytakesplaceeither:
• Intheprincipalmarketfortheassetorliabilityor• Intheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability
TheFundmustbeabletoaccesstheprincipalorthemostadvantageousmarketatthemeasurementdate.
Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability,assumingthatmarketparticipantsactintheireconomicbestinterest.
Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipant’sabilitytogenerateeconomicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.
TheFundusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue,maximisingtheuseofrelevantobservableinputsandminimisingtheuseofunobservableinputssignificanttothefairvaluemeasurementasawhole:
• Level1—Quoted(unadjusted)marketpricesinactivemarketsforidenticalassetsorliabilities;• Level2—Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisdirectlyor
indirectlyobservable;• Level3—Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisunobservable.
Forassetsandliabilitiesthatarerecognisedinthefinancialstatementsonarecurringbasis,theFunddetermineswhethertransfershaveoccurredbetweenlevelsinthehierarchybyre-assessingcategorisation(basedonthelowestlevelinputthatissignificanttothefairvaluemeasurementasawhole)attheendofeachreportingperiod.
2r. Significant accounting judgments, estimates and assumptions
ThepreparationoftheFund’sconsolidatedfinancialstatementsrequiresmanagementtomakejudgments,estimatesandassump-tionsthataffectthereportedamountsofrevenues,expenses,assetsandliabilities,andthedisclosureofcontingentliabilities,atthereportingdate.However,uncertaintyabouttheseassumptionsandestimatescouldresult inoutcomesthatcouldrequireamaterialadjustmenttothecarryingamountoftheassetorliabilityaffectedinthefuture.
Judgments Classification of investment propertyTheFunddetermineswhetherapropertyqualifiesasinvestmentproperty.Investmentinpropertymainlycomprisestheinvestmentinlandandbuildingsintheformofoffices,commercialwarehouse,retailforresidentialpropertieswhicharenotoccupiedsubst-antiallyforuseby,orintheoperationsof,theFund,norforsaleintheordinarycourseofbusiness,butareheldprimarilytoearnrentalincomeandcapitalappreciationbyleasingtothirdpartiesunderlongtermoperatingleases.
Operating lease contracts – Fund as lessorLeasesinwhichsubstantiallyallrisksandrewardsofownershipareretainedbyanotherparty,thelessor,areclassifiedasoperatingleases.TheFundhaddetermined,basedonanevaluationofthetermsandconditionsofthearrangementsthatitretainsallthesignificantrisksandrewardsofownershipofthesepropertiesandsoaccountsfortheseleasesasoperatingleases.
Deferred taxTheFundissubjecttoincomeandcapitalgainstaxesinnumerousjurisdictions.Significantjudgmentisrequiredindeterminingthetotalprovisionforincomeanddeferredtaxes.Therearemanytransactionsandcalculationsforwhichtheultimatetaxdeterminati-
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onandtimingofpaymentisuncertainduringtheordinarycourseofbusiness.Inparticular,theeffectivetaxrateapplicableonthetemporarydifferencesoninvestmentpropertiesdependsonthewayandtimingtheinvestmentpropertywillbedisposedof.TheFundrecognisesliabilitiesforanticipatedtaxissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpacttheincomeanddeferredtaxprovisionsintheyearinwhichthedeterminationismade.
Determining whether the Fund meets the definition of an investment entity according to IFRS 10Tomeetthedefinitionofaninvestmententity,thefollowingcriteriamustbemet:– Anentityobtainsfundsfromoneormoreinvestorsforthepurposeofprovidingthoseinvestorswithinvestmentservices;– Anentitycommitstoitsinvestorsthatitsbusinesspurposeistoinvestfundssolelyforreturnsfromcapitalappreciation,in-
vestmentincomeorboth;and– Anentitymeasuresandevaluatestheperformanceofsubstantiallyallofitsinvestmentsonafairvaluebasis.
TheFundreportsitsinvestmentsatfairvalueunderIFRS40,‘InvestmentProperties’intheconsolidatedfinancialstatements.However,theentity’skeymanagementpersonneldonotrelysolelyonfairvalueofthepropertiesastheprimaryattributetoevaluatetheperformanceofsubstantiallyallitsinvestmentsandtomakeinvestmentdecisions.Instead,otherindicatorsareusedtoevaluateperformanceandmakeinvestmentdecisionswhichcompriseofprospectiveleases,occupancyrate,leaseterm,futurerents,propertyyield,propertylocation,netpropertyincome,tenantquality/profileandmanyothervariablesandmarketconditions.
TheBoardofDirectorsoftheFundhasthereforeconcludedthattheFunddoesnotmeetthedefinitionofaninvestmententityandthereforeisnotexemptedfromconsolidatingitscontrolledentities.
Estimates and assumptions
Deferred tax assetsDeferredtaxassetsarerecognisedforallunusedtaxlossestotheextentthatit isprobablethattaxableprofitwillbeavailableagainstwhichthelossescanbeutilised.Significantmanagementjudgmentisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.
Fair value of investment propertiesTheFundcarriesitsinvestmentpropertiesatfairvalue,withchangesinfairvaluebeingrecognisedinprofitorloss.TheFunden-gagedtwoindependentvaluationspecialiststodeterminefairvalueasat31December2014and31December2015.Thevaluatorsusedavaluationtechniquebasedonadirectcapitalizationapproachasthereisalackofcomparablemarketdatabecauseofthenatureoftheproperty.Thedeterminedfairvalueoftheinvestmentpropertiesisthemostsensitivetotheestimatedyield.Thekeyassumptionsusedtodeterminethefairvalueoftheinvestmentproperty,arefurtherexplainedinNote9.
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3. FUND’S RISk MANAGEMENT POLICy
3a. Risk relating to investment in real estateInvestmentinrealestateissubjecttovaryingdegreesofrisk.Themainfactorswhichaffectvalueofinvestmentinclude:
(i) Changesinthegeneraleconomicclimate;(ii) Conditionsinthemarketinwhichinvestedrealestateoperate;(iii) Governmentregulationsandtaxation;(iv) Availabilityofinvestmentopportunitiesinrealestate;(v) Propertydamageandbusinessinterruptioninrelationtoit,thirdpartyliability.
ThekeyelementsoftheFund’sriskreductionstrategyshallinclude(describedinmoredetailintheFund’sPPMdated29June2012):
(i) Atleast80%ofallinvestmentsmustbeofalong-termnature,therebyreducingtheriskofhighvacancyratios.Allbuildingswillbemaintainedatahighstandardtoensurethattheunderlyingvaluesareprotected.
(ii) TheFundwillownadiversifiedportfolioofpropertiesthatarespreadacrossgeographiesandsegments;oncefullyinvested,theFundisexpectedtoownaportfolioof100,000–150,000squaremeters.
(iii) TheFundwillhaveakeyfocusonmanagingthevacancyrateattheportfoliolevelbyseekingtohaveleaseagreementsofdifferentlengthinorderforleasestoexpiregraduallyovertheFund’slife,totheextentpossible.
(iv) TheFundwillseektoestablishadiversifiedtenantbasespreadacrossmanyindustries/sectors.(v) EachmajorinvestmentwillbereviewedandapprovedbytheBoardofDirectors.Comprehensivecommercial,legal,technical
andtaxduediligencewillbeperformedoneachacquisition.Onlyreputableandindependentadviserswithstrongtrackre-cordsinthefieldofacquisitionswillbeselectedwhenassessingandevaluating
(vi) variousinvestmentopportunities.(vii) Insurancewillbeorganizedthroughanationalorinternationalinsurancecompany.Subjecttolocationanduseoftheproper-
ties,insurancewill includelossofrentcoverageofatleast12monthsinthecaseofterroristattacks,fire,destructionofaparticularproperty,oranyothereventthatmightdamagetheproperty.
(viii) OnlyleadingnationalorinternationalcompanieswithapprovedtrackrecordsuchasErnst&Young,PricewaterhouseCoopers,DeloitteorKPMGwillprovidetax,financial,andaccountingadvice.
ToaddresstheseriskstheFundissubjecttothefollowinginvestmentdiversificationpolicythataredescribedinmoredetailintheFund’sPPM:
(i) Followingtheinvestmentperiodnomorethan15%ofthefinalFund‘sGAVwillbeinvestedinanysinglerealestateproperty;(ii) Thetenlargestinvestmentsmaynotbemorethan50%ofthefinalFund’sGAV;and(iii) TheFundwillnotinvestmorethan30%ofitsNAVinonerealestatecompany.
Asof31December2015,48.57%ofFund’sGAVisinvestedinasinglerealestatepropertylocatedinTakustraße39/Lansstraße2,D–14195Berlin-Dahlem;17.66%oftheofFund’sGAVisinvestedinanothersinglerealestatepropertylocatedinBessemerstraße82,D–12103Berlin,OTSchöneberg;15.37%of theofFund’sGAV is invested ina third single realestateproperty located inSchlenzigstrasse8,D–21107,Hamburg.
Inthisrespectithastobenoted,thatthepresentportfoliosizehasnotreachedthesizeofEUR1,000,000,000initiallyplanned.Furthermore,anextraordinarygeneralmeetingofshareholdersin2010hasdecreasedthetargetedFundsizetoEUR300,000,000beforetheinvestmentperiodexpired.Therefore,managementseestheabovementioned“passivebreach”oftheFund’sdiver-sificationpolicynotasaFund’scomplianceissue,butmoreasafact,that lessequitycouldberaisedduringtheinitialplannedinvestmentperiod.Asaresult,theinitialportfoliocouldnotbeincreased.
3b. Significant accounting judgments, estimates and assumptions In2013themanagementhastakenactiontostartdisposingthepropertieswithnofuturevalueenhancementandtore-investingthefundsinto(more)smallerassetswiththeaimthatnomorethan15%ofthefinalFund‘sGAVwillbeinvestedinanysinglerealestateproperty,iftheinterestoftheFundandtheshareholdersojustifies.Additionally,furtheractivitiestorestructuretheFundto
32 BPT Hansa Lux SICAV-SIF Annual Report 2015
anumbrellafundareunderreview,inordertoopentheinvestmentpossibilityagainforexistingandnewinvestorsandtoincreasetheFundsize.
3c. Credit risk TheFund’sproceduresareinforcetoensureonapermanentbasisthatpropertiesareleasedtocustomerswithanappropriatecre-dithistoryanddonotexceedanacceptablecreditexposurelimit.Majoracquisitionandprojectfinancecreditrisksareminimisedbysharingtheseriskswithbanksandinsurancecompanies.Creditrisksrelatedtotheplacementofliquidfundsandtotradinginfinancialinstruments(counterpartycreditrisks)areminimisedbymakingagreementsonlywiththemostreputabledomesticandinternationalbanksandfinancialinstitutions.
Themaximumexposuretocreditriskisrepresentedbythecarryingamountofeachfinancialasset,includingderivativefinancialinstruments,ifany,intheconsolidatedstatementoffinancialposition.
3d. Interest rate risk TheFund isexposedto interest rateriskprimarily throughmarketvaluechangestothenetdebtportfolio (pricerisk)andalsothroughchangesininterestrates.Fluctuationsininterestratesaffecttheinterestexpense.Thereistheriskmanagementpolicytosecurethelong-termloanstoafixedratefortheirwholelife.Inordertoachievethis,theFundentersintofixedrateloans(Note19b).
At31December2015and2014100%oftheFund’sborrowingsareatfixedinterestrate,therefore,changesininterestratehasnoimpactonFund’sequityandFund’sprofitbeforetax.
3e. Liquidity riskTheinvestmentsmadebytheFundwillbeilliquidinnature.TheabilityoftheFundtoliquidateitsinvestmentsatattractivepricesatappropriatetimeswilldependonanumberoffactorsthatmaybeoutsideofthecontrolofthemanagement.TheFund’smana-gementreviewstheliquidityoftheassetsheldwithintheFundbasedoncurrentmarketconditionsonaregularbasis.
TheFund’sobjectivesaretomaintainabalancebetweencontinuityoffundingandflexibilitythroughtheuseofbankloans.Basedonthecarryingvalueofborrowingsreflectedintheconsolidatedfinancialstatements,2.7%ofFund’sborrowingswillmatureinlessthanoneyearat31December2015(2014:2.8%).ThetablebelowsummarisesthematurityprofileofFund’sfinancialliabilitiesat31December2015and2014.
Less than 1
’000 Euro On demand year 1-5 years >5 years Total
Year ended 31 December 2015
Interestbearingloansandborrowings - 2,511 28,766 8,785 40,062
Tradeandotherpayables - 97 - - 97
Otherliabilities - 296 23 99 418
Total current and non-current - 2,904 28,789 8,884 40,577
Year ended 31 December 2014
Interestbearingloansandborrowings - 2,607 33,922 4,490 41,019
Incometaxpayable - 39 - - 39
Tradeandotherpayables - 149 - - 149
Otherliabilities - 315 89 22 426
Total current and non-current - 3,110 34,011 4,512 41,633
33BPT Hansa Lux SICAV-SIF Annual Report 2015
3f. Foreign exchange risk TheFundholdsfinancialassetsandfinancialliabilitiesdenominatedintheEuro,whichisitsfunctionalcurrency.TheFund,therefo-re,hasnoriskfrommovementsinexchangeratesofothercurrenciesagainstEuro.
3g. Capital management TheFundmonitorscapitalusinggearingratio,whichisdeterminedbydividingborrowingsbythesumofsubscribedcapitalandborrowings.TheFund’stargetgearingratioismaximum70%thatshouldbereachedwhentheFundisfullyinvested.
’000 Euro 2015 2014
Interestbearingloansandborrowings 34,165 34,054
Total borrowings 34,165 34,054
Subscribedcapital 24,348 24,348
Total borrowings and subscribed capital 58,513 58,402
Gearing ratio 58.4% 58.3%
34 BPT Hansa Lux SICAV-SIF Annual Report 2015
4. COST OF RENTAL ACTIVITIES
’000 Euro 2015 2014
Real estate taxes 281 281
Repair and maintenance 114 125
Utilities 176 178
Propertymanagementexpenses 158 157
Propertyinsurance 83 81
Baddebtallowances 13 40
Othercosts 50 44
Total cost of rental activities 875 906
In2015,EUR513thousandoftotalrentalactivitiescostswererechargedtothetenants(2014:EUR511thousand).Therechargedamountisincludedintherentalincomebalance.
5. ADMINISTRATIVE EXPENSES
’000 Euro 2015 2014
Managementfee 434 447
External consultant expenses 209 212
BoardfeesandotherBoardrelatedexpenses 86 65
Other 5 6
Total 734 730
NorthernHorizonCapitalA/SisentitledtoabasemanagementfeeequivalenttoapercentageofthevalueoftheFund’sinvestmentinrealestate.AquarterlymanagementfeeisbasedontheinvestmentpropertiesGAVattheendofeachcalendarquarterandcharged0.75%oftheGAVperannumoftherealestateportfolio.
6. FINANCIAL INCOME
’000 Euro 2015 2014
Otherfinancialincome - 239
Total - 239
35BPT Hansa Lux SICAV-SIF Annual Report 2015
7. FINANCIAL EXPENSES
’000 Euro 2015 2014
Interestonbankloans 1,687 1,704
Otherfinancialexpenses 18 15
Otherinterestexpenses 29 -
Total 1,734 1,719
8. INCOME TAX
BPTHansaLuxSICAV-SIFissubjecttoanincometax(corporateincometaxandmunicipalbusinesstax)attheglobalrateof29.22%(2014:29.22%).However,BPTHansaLuxSICAV-SIFcanexemptfromitstaxbaseallinvestmentincomeorcapitalgainsattributabletosecurities.
Realestaterevenues,orcapitalgainsderivedfromrealestatearesubjecttotaxesbyassessmentinthecountrieswhererealestateissituated.TheFund’ssubsidiariesdepreciatetheirhistoricalpropertycostinaccordancewithapplicabletaxregulations.Depre-ciationisdeductedfromtaxableprofitsindeterminingcurrenttaxableincome.
Themajorcomponentsofincometaxfortheyearsended31December2015and2014are:
’000 Euro 2015 2014
Consolidated statement of comprehensive income
Taxontaxableincomefortheyear 6 (4)
Taxrelatedpriorperiods* (131) -
Adjustmentofdeferredtaxfortheyear (263) 394
Income tax expense reported in the income statement (388) 390
Revaluationofderivativeinstrumentstofairvalue - -
Income tax expense reported in other comprehensive income - -
Income tax expense reported in the statement of comprehensive income (388) 390
*TaxpaidinrelationtoWeinmeisterpropertydisposalin2013.
36 BPT Hansa Lux SICAV-SIF Annual Report 2015
Deferredincometaxasat31December2014and2013relatestofollowing:
Consolidated statement of Consolidated income
financial position statement
’000 Euro 2015 2014 2015 2014
Deferred tax liability
Investmentpropertyfairandtaxvaluedifferences (1,132) (1,024) (108) (527)
(1,132) (1,024) (108) (527)
Deferred tax assets
Taxlossesbroughtforward 925 1,080 (155) 921
925 1,080 (155) 921
Deferred income tax asset/ (liability), net (207) 56 Deferred income tax expenses/(income) (263) 394
Reflectedinthestatementoffinancialpositionasfollows
Deferredtaxassets 925 1,080
Deferredtaxliability (1,132) (1,024)
Deferred income tax liability, net (207) 56
ThetaxlossesincurredbytheFund’sGermanentitieswererecognisedtotheextentitcanbeutilisedinnearfuture.
Thereconciliationbetweentaxexpenseandaccountingprofitfortheyearsended31December2015and2014isasfollows:
’000 Euro 2015 2014
Profit/(loss)beforeincometax 1,590 (1,165)
AtLuxembourgstatutorytaxrateof29.22%(2014:29.22%) (468) 454
Effectofdifferenttaxratesinothercountries 208 (64)
Adjustmentsrelatedtopreviousyear (131) -
Total income tax expenses (388) 390
Summaryoftaxationratesbycountryispresentedbelow:
2015 2014
Germany 15.825% 15.825%
Luxembourg 29.22% 29.22%
ThesubsidiariesinGermanyarenotsubjecttotheGermanincometax.BPTHansaLuxSICAV-SIFisthelimitedtaxpayerinGermanyontheincomereceivedfromitspartnershipinterestheldinthesubsidiariesatataxrateof15.825%in2015and2014.
37BPT Hansa Lux SICAV-SIF Annual Report 2015
9. INVESTMENT PROPERTy
Investmentpropertyrepresentsbuildings,whicharerentedoutunderleasecontracts.
ThefairvalueoftheinvestmentpropertieswasjointlyappraisedbytwoindependentvaluatorsbulwiengesaappraisalGmbHandDr.-Ing.EgbertKrellmann(publiclyappointedandswornexpert),inaccordancewiththePracticeStatementsandRelevantGuidan-ceNotesoftheRICSAppraisalandValuationandapprovedbyboththeInternationalValuationStandardsCommittee(IVSC)andbytheEuropeanGroupofValuers’Association(TEGoVA).Inaccordancewiththatbasis,themarketvalueisanestimatedamountforwhichapropertyshouldexchangeonthedateofvaluationbetweenawillingbuyerandawillingsellerinanarm’slengthtran-sactionafterpropermarketingwhereinthepartieshadeachactedknowledgeably,prudentlyandwithoutcompulsion.PrioryearvaluationswerealsoperformedbytwoindependentvaluatorsbulwiengesaappraisalGmbHandDr.-Ing.EgbertKrellmann.
TheappraisersderivethefairvaluebyapplyingthemethodologyandvaluationguidelinesassetoutbytheRoyalInstitutionofCharteredSurveyorsintheUnitedKingdomandinaccordancewithIAS40.
Investmentpropertieswerevaluedonanannualbasis,asrequiredbytheFund’sPrivatePlacementMemorandumdated29June2012.
’000 Euro 2015 2014
Cost
Balance at 1 January 60,332 60,217
Additions(subsequentexpenditure) - 115
Cost at 31 December 60,332 60,332
Fair valuations
Accumulated fair value adjustment at 1 January (2,732) (217)
Disposals - -
Netrevaluationgain(loss)fortheyear 900 (2,515)
Accumulated fair value adjustment at 31 December (1,832) (2,732)
Carrying amount at 31 December 58,500 57,600
In2009,theFundhasreceivedagovernmentgrantofEUR3,760thousandfordevelopmentofBerlin-DahlemCampus,whichdec-reasedtheacquisitioncostoftheinvestmentproperty.
38 BPT Hansa Lux SICAV-SIF Annual Report 2015
Fair value hierarchyThefollowingtableshowsananalysisofthefairvaluesofinvestmentpropertyrecognisedinthestatementoffinancialpositionbylevelofthefairvaluehierarchy:
Total gain or (loss)
‘000 Euro in year 2015 in the
31 December 2015 Level 1 Level 2 Level 3 Total income statement
Hannover-Office - - 8,600 8,600 -
Berlin–Hotel/Retail - - 29,700 29,700 700
Hamburg–Office/Industrial - - 9,400 9,400 200
Berlin-Office - - 10,800 10,800 -
Total - - 58,500 58,500 900
TherewerenotransfersbetweenLevelsduringtheyear.Gainsand lossesrecorded inthe incomestatementfor recurringfairvaluemeasurementscategorisedwithinLevel3ofthefairvaluehierarchyamounttoEUR900thousandandarepresentedintheconsolidatedincomestatementinlines‘Grossvaluationgainsoninvestmentproperties’and‘Grossvaluationlossesoninvestmentproperties’.
Description of valuation processTherealestatepropertyvaluationpoliciesoftheFundaredeterminedbytheBoardbasedonmarketpractice.Realestateproper-tiesareassessedatleastannuallybytwoindependentrealestateappraisers(the”Appraisers“)appointedfromtimetotimebytheBoard.TheAppraisersareselectedfromprofessionalsorcompanieswhoarelicensedandwhooperateinthegeographicalareawhereanyrelevantrealestatepropertiesarelocated.Thepropertyvaluationisbasedonfairmarketvalueasof31DecembereachyearandinprincipleisasinglevaluationsignedbybothindependentAppraisers.IftheAppraisersdonotreachanagreementandbothopinionsarecredible,theBoardwillrelyonthevaluethattheFundismostlikelytorealizefromthepropertyinanormalsale.
Valuation techniques used to derive Level 3 fair valuesAt31December2015,valuationsof investmentpropertieswereperformedby two independentvaluators jointly,bulwiengesaappraisalGmbHandDr.-Ing.EgbertKrellmann(publiclyappointedandswornexpert).
Thetablebelowpresentsthefollowingforeachclassoftheinvestmentproperty:- Thefairvaluemeasurementsattheendofthereportingperiod;- Adescriptionofthevaluationtechniquesapplied;- Theinputsusedinthefairvaluemeasurement;- Quantitativeinformationaboutthesignificantunobservableinputsusedinthefairvaluemeasurement.
39BPT Hansa Lux SICAV-SIF Annual Report 2015
Highest and best useForallinvestmentpropertythatismeasuredatfairvalue,thecurrentuseofthepropertyisconsideredthehighestandbestuse.
Fair value 31 Valuation Key unobservable
Class of property December 2015 technique inputs Range
’000 Euro
Hannover-Office 8,600 Income -Discountrate 6.26%
capitalization -Longtermvacancyrate 3.10%
-Capitalizationyield 5.75%
- ERV EUR42-126
Berlin–Hotel/Retail 29,700 Income -Discountrate 5.83%
capitalization -Longtermvacancyrate 0.00%
-Capitalizationyield 5.50%
- ERV EUR152-384
Hamburg–Office/Industrial 9,400 Income -Discountrate 5.73%
capitalization -Longtermvacancyrate 0.00%
-Capitalizationyield 5.50%
- ERV EUR85-145
Berlin-Office 10,800 Income -Discountrate 6.25%
capitalization -Longtermvacancyrate 0.00%
-Capitalizationyield 5.50%
- ERV EUR41-73
Total 58,500
Descriptions and definitionsThetableinthepreviouspageincludesthefollowingdescriptionsanddefinitionsrelatingtovaluationtechniquesandkeyunobser-vableinputsmadeindeterminingthefairvalues:
Income capitalizationValuationsarepreparedusingthedirectcapitalizationapproach.Underthedirectcapitalizationapproach,theincomeandexpen-sesofoneyeararestabilisedandthenetresultingoperatingincomeiscapitalisedatacapitalisationorreturnrateinproportiontothetitletothesubjectproperty.Suchincomecapitalisationconsidersthecompetitivereturnresultingfromalternativeinstrumentsofinvestmentintorealestateorotherproperty.Thiscalculationexcludestheeffectsoftaxesanddisposalcostsbornebytheseller,andisnetoftransactioncostsnormallybornebythepurchaser.
Long term vacancy rateLong-termvacancyrateisdeterminedbasedonthepercentageofestimatedvacantspacedividedbythetotallettablearea.
Estimated rental value (ERV)Therentatwhichspacecouldbeletinthemarketconditionsprevailingatthedateofvaluation.
Capitalization yieldAverageinternalrateofreturnofthecashflowfromtheproperty.
40 BPT Hansa Lux SICAV-SIF Annual Report 2015
10. TRADE AND OTHER RECEIVABLES
’000 Euro 2015 2014
Tradereceivable,gross 662 674
Lessallowancefordoubtfulreceivables (274) (314)
Accountsreceivablefromlimitedpartners 427 456
Prepaid expenses 133 159
Accrued income 1 3
Otheraccountsreceivable 138 201
Total 1,087 1,179
Tradereceivablesarenon-interestbearingandaregenerallyon30days’terms.
Asat31December2015,tradereceivablesatnominalvalueofEUR274thousand(2014:EUR314thousand)wereimpairedandfullyprovidedfor.Allowancesfordoubtfulreceivablesaccountedforin2015arerelatedtoBessemerproperty(EUR13thousand).Theallowancesfordoubtfulreceivablesaccountedforin2014arerelatedtoBerlin-Dahlemproperty(EUR301thousand)andBessemerproperty(EUR13thousand).
Movementsintheprovisionforimpairmentofreceivableswereasfollows:
’000 Euro 2015 2014
Balanceat1January (314) (274)
Chargefortheyear (13) (40)
Amountwrittenoff 53 -
Balance at 31 December (274) (314)
Asat31December,theageinganalysisoftradereceivablesthatwerepastduebutnotimpairedisasfollows:
Neither past Past due but not impaired
due nor
’000 Euro Total impaired <30 days 30-60 days 60-90 days 90-120 days >120 days
2015 387 - 38 - - - 349
2014 360 - - 67 - - 293
41BPT Hansa Lux SICAV-SIF Annual Report 2015
11. CASH AND CASH EqUIVALENTS
’000 Euro 2015 2014
Cashatbanksandonhand 640 701
Total cash 640 701
Forthepurposeoftheconsolidatedcashflowstatement,cashandcashequivalentsconsistofcashandcashequivalentsnetofoutstandingbankoverdrafts.Asat31December2015and31December2014,theFundhadnooutstandingbankoverdrafts.
12. EqUITy
12a. Subscribed capitalAsat31December2015and2014,thesubscribedcapitalofBPTHansaLuxSICAV-SIFisrepresentedby243,484ordinaryshareswithaparvalueofEUR100each,fullypaid-in.Therewerenochangesinnumberofsharesandsharevalueduring2015and2014. 12b. Dividends paid
’000 Euro 2015 2014
Declaredandpaidduringtheyear* 730 -
Total dividends paid 730 -
*EUR3pershare.
42 BPT Hansa Lux SICAV-SIF Annual Report 2015
13. INTEREST BEARING LOANS AND BORROwINGS
Effective
’000 Euro Maturity interest rate 2015 2014
Non-current borrowings
BerlinerSparkasse 30June2019 5.32% 16,942 17,406
MünchenerHypothekenbankeG 30September2018 2.83% 5,921 6,057
BerlinerSparkasse 31December2019 5.97% 5,330 5,485
SparkasseHannoverAG* 30October2022 4.77% 5,039 5,191
SparkasseHannoverAG 30October2022 1.79% 1,000 -
Lesscapitalisedloanarrangementandlegalfees (67) (85)
Lesscurrentportion (909) (957)
Total non-current debt 33,256 33,097
Current portion of non-current borrowings
Currentportionofnon-currentborrowings 909 957
Total current debt 909 957
Total 34,165 34,054
*On20October2015theloanmaturitywasextendedfrom30October2016to30October2022.
ForthematurityoftheborrowingsseeNote3d.
Fortheborrowingsreceived,theFundissuedthefollowingsecurities:• Assignmentoflandchargeforpropertieslocatedat: o Walsroderstrasse93/93a,Hannover,Germany,withthecarryingvaluetotallingtoEUR8,600thousand; o Bessemerstrasse82,Berlin,Germany,withthecarryingvaluetotallingtoEUR10,800thousand; o Lansstrasse2,14195Berlin-Dahlem,Germany,withthecarryingvaluetotallingtoEUR29,700thousand; o Schlenzigstrasse8,D-21107Hamburg,Germany,withthecarryingvaluetotallingtoEUR9,400thousand.• Assignmentofrightsandclaimsofexistingandfuturerentreceivablesfromleaseagreementsofinvestmentpropertieslocated
atWalsroderstrasse93/93a,Hannover,Germany;Bessemerstrasse82,Berlin,Germany;Lansstrasse2,14195Berlin-Dahlem,GermanyandSchlenzigstrasse8,D-21107Hamburg,Germany.
43BPT Hansa Lux SICAV-SIF Annual Report 2015
14. TRADE AND OTHER PAyABLES
’000 Euro 2015 2014
Tradepayables 97 149
Total trade and other payables 97 149
Termsandconditionsoftradeandotherpayables:• Tradepayablesarenon-interestbearingandarenormallysettledon30-dayterms.• Otherpayablesarenon-interestbearingandhaveanaveragetermof3months.
15. OTHER CURRENT LIABILITIES
’000 Euro 2015 2014
Accruedauditandaccountingfees 95 96
Accrueddirectorsfeesandrelatedtaxes 20 14
Otheraccruedpayables 98 105
Othercurrentliabilities 83 100
Total other current liabilities 296 315
16. COMMITMENTS AND CONTINGENCIES
16a. Operating lease commitments – Fund as a lessorTheFundleasesrealestateunderoperatingleases.Thetermsoftheleasesareinlinewithnormalpractisesineachmarket.Leasesarereviewedorsubjecttoautomaticinflationaryadjustmentsasappropriate.
TheleasingarrangementsenteredintoorinrelationwithFund’sinvestmentpropertiesportfoliowhichincludeaclauseauthorisingtenantstoterminatetheleasingarrangementsuptosix-months’noticeareassuchconsideredascancellableleases.
Leasepaymentsreceivablefromnon-cancellableleaseareshownbelow.Forthepurposesofthisscheduleitisconservativelyassu-medthataleaseexpiresonthedateofthefirstbreakoption.
2015 2014
’000 Euro Amount receivable % Amount receivable %
Within1year 3,399 10% 3,380 9%
Between2and5years 11,882 34% 11,933 32%
5yearsandmore 19,748 56% 22,103 59%
Total 35,029 100% 37,416 100%
16b. LitigationAsat31December2015,theFundhadnopendinglegalactions.
44 BPT Hansa Lux SICAV-SIF Annual Report 2015
17. RELATED PARTIES
Duringtheyear,theFundenteredintotransactionswithrelatedparties.Thosetransactionsandrelatedbalancesarepresentedbelow.
Northern Horizon Capital A/S TheFundhasenteredintoinvestmentadvisoryagreementwithNorthernHorizonCapitalA/S.Underthetermsoftheagreement,NorthernHorizonCapitalA/Sgroupcompaniescarryoutassetmanager’sfunctionsonbehalfoftheFundandtheFundispayingmanagementfeesrespectively(Note5).In2015and2014aquarterlymanagementfeewasbasedontheinvestmentpropertiesGAVattheendofeachcalendarquarterandcharged0.75%oftheGAVperannumoftherealestateportfolio.
Inaddition,internalcostsbornebyNorthernHorizonCapitalA/Sgrouprelatedtotheacquisitionofpropertiesareremuneratedwithanacquisitionfeeof0.3%oftheinvestmentvalueofeachacquisitionmade.Therewerenoacquisitionsofpropertiesin2015or2014andrespectivelynoacquisitionfeecharged.
Thefollowingtableprovidesthetotalamountofthetransactions,whichhavebeenenteredintowithrelatedpartiesfortherele-vantfinancialyear:
’000 Euro 2015 2014
Northern Horizon Capital A/S group
Managementfees (434) (447)
Propertymanagementfees (20) (25)
NorthernHorizonCapitalA/Sowns6,591ordinarysharesoftheFund(2.7%).
Entities having control or significant influence over the FundTheshareholdersowningmorethan5%oftheordinarysharesasof31December2015:
Number of shares %
DanskeCapital,SampoBankPlcclients 130,396 53.6%
AageV.JensenCharityFoundation 40,000 16.4%
DanskeCapitalPlc 26,634 10.9%
EvliBankPlc 16,640 6.8%
Board of Directors interests in the FundAsof31December2015themembersoftheBoardofDirectorsheld3,659ordinarysharesoftheFund(1.5%).
18. REMUNERATION OF THE MANAGEMENT AND OTHER PAyMENTS
TheFund’smanagement(BoardofDirectors)remunerationamountedtoEUR21thousandin2015(2014:EUR22thousand).In2015and2014,themanagementoftheFunddidnotreceiveanyloansorguarantees;nootherpaymentsorpropertytransfersweremade or accrued.
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19. FINANCIAL INSTRUMENTS
19a. Fair values SetoutbelowisacomparisonbycategoryofcarryingamountandfairvaluesofalloftheFund’sfinancial instrumentsasof31December2015and2014:
Carrying amount Fair value
’000 Euro 2015 2014 2015 2014
Financial assets
Tradeandotherreceivables 1,087 1,179 1,087 1,179
Cashandcashequivalents 640 701 640 701
Financialliabilities
Interestbearingloansandborrowings 34,165 34,054 38,166 39,137
Tradeandotherpayables 97 149 97 149
Othercurrentliabilities 296 316 296 316
Fair value hierarchyQuantitativedisclosuresoftheFund’sfinancialinstrumentsinthefairvaluemeasurementhierarchyasat31December2015and2014:
Year ended 31 December 2015
’000 Euro Level 1 Level 2 Level 3 Total fair value
Financialliabilities
Interest-bearingloansandborrowings - 38,166 - 38,166
Year ended 31 December 2014
’000 Euro Level 1 Level 2 Level 3 Total fair value
Financialliabilities
Interest-bearingloansandborrowings - 39,137 - 39,137
Themanagementassessedthatcash,tradeandotherreceivables,tradeandotherpayablesandotherliabilitiesapproximatetheircarryingamountslargelyduetotheshort-termmaturitiesoftheseinstruments.
Thefairvalueofthefinancialassetsandliabilitiesisincludedatthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Thefollowingmethodsandassumptionswereusedtoestimatethefairvalues:
• TradeandotherreceivablesareevaluatedbytheFundbasedonparameterssuchasinterestrates,specificcountryriskfactors,individualcreditworthinessofthecustomer,andtheriskcharacteristicsofthefinancedproject.Basedonthisevaluation,allo-wancesaretakenintoaccountfortheexpectedlossesofthesereceivables.Asat31December2015,thecarryingamountsofsuchreceivables,netofallowances,werenotmateriallydifferentfromtheircalculatedfairvalues.
• FairvaluesoftheFund’sinterest-bearingloansandborrowingsaredeterminedbyusingtheDiscountedCashFlow(DCF)met-hodatprevailinginterestrates.
46 BPT Hansa Lux SICAV-SIF Annual Report 2015
19b. Interest rate riskThefollowingtablesetsoutthecarryingamountbymaturity,oftheFund’sfinancialinstrumentsthatareexposedtointerestraterisk:
Year ended 31 December 2015
Less than More than
’000 Euro 1year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total
Fixed rate
Bankloan (164) (195) (198) (202) (205) (4,075) (5,039)
Bankloan* (5) (30) (31) (31) (32) (870) (1,000)
Bankloan (140) (144) (5,619) - - - (5,903)
Bankloan (436) (563) (594) (15,318) - - (16,910)
Bankloan (164) (175) (185) (213) (389) (4,186) (5,313)
*newloantakenonOctober22,2015.
Year ended 31 December 2014
Less than More than
’000 Euro 1year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total
Fixed rate
Bankloan (152) (5,039) - - - - (5,191)
Bankloan (136) (140) (144) (5,613) - - (6,033)
Bankloan (514) (542) (571) (603) (15,135) - (17,365)
Bankloan (155) (164) (175) (185) (214) (4,572) (5,465)
Interestonfinancialinstrumentsclassifiedasfixedrateisfixeduntilthematurityoftheinstrument.TheotherfinancialinstrumentsoftheFundthatarenotincludedintheabovetablesarenon-interestbearingandarethereforenotsubjecttointerestraterisk.
19c. Credit riskTherearenosignificantconcentrationsofcreditriskwithintheFund.
20. SUBSEqUENT EVENTS Therehavebeennoeventssubsequenttothebalancesheetdatewhichrequireadjustmentofordisclosureinthefinancialstate-ments.
47BPT Hansa Lux SICAV-SIF Annual Report 2015
21. LIST OF CONSOLIDATED COMPANIES
Subsidiariesincludedintheconsolidatedfinancialstatements
Company name Registered office Registration Number Date of Acquisition
Activity Share capital
BPTHansaS.àr.l. 2,rued’Alsace,L-1122Luxembourg
B-120957 13November2007 Financingcompany 100%
BPTGmbH&Co.Vermögensverwal-tungKG
Weinmeisterstr. 12 –14,10178Berlin,Germany
HRA42461B 10November2006 Asset holding company
100%(directly93.82%,indirectly6.18%)
BPTGmbH Weinmeisterstr. 12 –14,10178Berlin,Germany
HRB110698B 10November2006 Generalpartner 100%
BPT1GmbH&Co.Vermögensverwal-tungKG
Weinmeisterstr. 12 –14,10178Berlin,Germany
HRA41318B 20November2007 Asset holding company
100%(directly99.99%,indirectly0.01%)
BPT1GmbH Weinmeisterstr. 12 –14,10178Berlin,Germany
HRB113832B 20November2007 Generalpartner 100%
BPT2GmbH&Co.KG Weinmeisterstr. 12 –14,10178Berlin,Germany
HRA44328B 28July2007 Asset holding company
100%(directly94%,indirectly6%)
BPT2Verwaltungs- gesellschaftmbH
Weinmeisterstr. 12 –14,10178Berlin,Germany
HRB126293B 28July2007 Generalpartner 100%
BPT3GmbH&Co.Vermögensverwal-tungKG
Weinmeisterstr. 12 –14,10178Berlin,Germany
HRA42479B 4June2008 Asset holding company
100%(directly94%,indirectly6%)
BPT3GmbH Weinmeisterstr. 12 –14,10178Berlin,Germany
HRB116714B 4June2008 Generalpartner 100%